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No. 30,391 


EUROPE'S BUSINESS NEWSPAPER 

Tuesday November 17 1987 


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World News 


Optimism 
in Geneva 
as talks 
resume 

Chief US and Soviet negotiators 
extended talks when they' 
resumed efforts in Geneva to 
clinch a treaty to reduce nuclear 
missiles in tune for a superpower 
summit in Washington nest 
month. 

Both sides expressed optimism* 
that a pact to ehjnin ate all Inter- 
mediate-range nuclear miwdtPK - 
more than 1,000 rockets - would 
be ready forslgniog nest month. 
Troop cuts. Page 2. 



Business Summary 


Japanese 

consider 

easing 

bank rules 

JAPAN'S 1 Ministry. of Finance 
advisory body has proposed abo- 
lition of barriers between bank- 
ing :and securities business in 
Japan and between different 

types of banks. Page 24 


V Nato nudear needs 

"■’.-s Nato needed better nuclear* 
strike jets and short-range 
nuclear weapons to. counter a 
Soviet threat, despite a US mis- 
. sile treaty with Moscow, US 
supreme allied, commander in 
Europe Gen John Galvin' said. 

- Iran attacks tankers 

Iranian gunboats launched two 
' ■ hit-and-run raids against tankers 

in the southern Gulf.. strafing' «- 
US-owned supertanker and a 
Greek-flagged vessel. within two 
" hours. 

. Ozone layer lobby 

. The European Bureau' of Con- 
1 sumer Unions said it would. 
4. - advise the public to stop buying 
certain products unless the EG 

- J and manufacturers imposed tigh- 

ter limits on chemicals in them 
which were damaging the earth's 
; ozone layer. Page 2 

T Sri Lanka battle ; : 

’ ’< Indian troops, backed by. heHcop- 
ten and a naval blockade oTthe 
• coast, intensified a drive to crush 

. . Tamil guerrillas in the east of Sri 
Lanka and killed IS in a bottle, - 
: Bandaranmik 0 *« stance* Page 
8 ' - 

More Malaysians held 

' ~ Malaysian police detained six 
1 more people, five of them Mos- 
i lem opposition leaders, bringing 
1 the total arrested in a pnHrtr-J 
and security crackdown to 103_ 

— - Austin Rover strike . ; 

About SflOO car assembly work- 
fn at. HjH A i w i ft .floi irr in 


. A 


day strike in a dispute over pen- 
UahfcPage lT ' " • - '• 

Italian ffights stoppage 

Flights were cancelled as Italian 
airport and flight, staff began a 
senes, of stoppages to press, 
demands for new contracts and 
better pensions. Union rebels. 
Page 2 

Bomb defused : . 

Bomb disposal experts drfhsed a 
limpet mine' found in a Johan- . 
nesourg post office. . 

University doeed 

The Kenyan Government closed 
Nairobi uiriverefty and dissolved 
the students 1 ' unjoin ^ after two 
days, of riots- over the arrest of 
student leaders. -Page 7 

Turks detained 

Two Turkish Communist leaders 
were detained for questioning by 
police when they arrived at 
Ankara airport after seven years' 
self-imposed-, exile in Europe. 
Page 2 . 7 

Swedish train crash 

At least five peojde were killed 
and 40 injured when two express 
trains collided head-on -In west-' 
em Sweden.- and' -burst into 
flames. 

New Guinea s ca n dals 

The Melanesian' ‘ island 1 of New 
Guinea was shocked, by two sep- 
arate but- related political scan- 
dals. Page 7 -- . . . 


whose shareholders 
san, Hitachi, Nippo, 


san, Hitachi, Nippon me insur- 
ance, and the Industrial Bank of 
Japan, has Invested FFr2.5bn 
(4437m) in a properly develop- 


(4437m) in a property develop- 
ment project in Paris. Page 28 

AIXIEDi IRISH Banks may post- 
pone a planned increase in its 
49.5 per cent investment in First 
Maryland Bancorp because of 
changes taking place in the US 
banking-market. Page 26 

BMW, West German motor 
group, reported sales up 17 par 
cent in' nine months to Septem- 
ber and expects higher sales and 
deliveries and steady profits for 
1987. Page 2d 

JAPAN’S three top property 
companies, Mitsui Real Estate, < 
Mitsubishi Estate and Sumitomo ; 


President Jose Same? of Brazil 
appeared undecided whether fid 
fight on for a five-year term of 
office and a preside nt ial system 
of -government, Page 24 - 

$13m ransom demand 

Kidnappers rejected a Sim ran- 
som .offer and naked a Lebanese 
magnate to: pay- 4l3m 'for the 
release of his five-year-old 
daughter, abducted on -Spain’s 
Casta ddl So9. - . v V - - 


ket conditions. Page 27 

CIGNA, one of the largest US 
insurance companies, has 
divested from South Africa by: 
selling its interests to local man- 
agement and staff far an undis- 
closed sum. Sage 27 

ROYAL Bank of Canada Is nego- 
tiating again with Dominion 
Securities, the country's largest 
investment dealer, with a view 
to taking effective control. Page 
.25 


US pledges to cut 
budget deficit 
by at least $23bn 

BY STEWART FLEMING IN WASHINGTON AND QUENTIN PEEL IN BRUSSELS 


HABCOHRT Brace. Jovanovich, 

' ‘the heavily indebted US publish- 
ing company, which recently 
fought off a takeover bid from 
.Robert. Maxwell, has. sold its 
magazine and school supplies 
businesses for 4334m. -Page 25 

EUROTUNNEL, Anglo-French 
group building the Channel tun- 
nel, -yesterday launched one of 
the most expensive stochmarket | 
flotations ever staged by a.pri- . 
vate. company, Page 24 , 

PLES8EY, UK electronics and ' 
defence group, is considering a 
plan to acquire lnraos, the loss- 
making semiconductor group, 
which could trigger a wave of 
consolidation in UK chip indus- 
try. Page 25 

WALL STREET: The Dow Jones 
industrial average closed up. 
14.09 at 1949.10. Page-46 '. 

LONDON: Late session doubts 
over prospects for progress on 
cutting the US budget deficit 
sharply cut early gains in equi- 
ties. The FT-SE lOO index closed 
up 6.4 at 1,684.7. The FT Ordi- 
nary index added 36.4 to 1,853£. 
Details Page 42 

TOKYO: Speculative buying 
helped equities sustain their 
advance. The Nikkei average 
rose 167.28 to 22,615.43. Page 46 

BRITAIN?8. retail sales rose a 
provisional 0.8 per cent to a 
record - level in October, more 
. than reversing a fall in the previ- 
ous month. Page U 

DOLLAR dosed in New York at 
DM1.7145; FFr5.7915; SFr 1.4090 
and Y137.16. It closed in London 
at DM1.7025 (DM1.6880); 

FFr5.7575 (FFr5.7250): 

SFrl.4015 (SFr 1.3875); and 
Y136.50 -(Y13S.90> On Bank of 
England figures the dollar's 
index rose ta 97.7 from 97.0. 
page as 

STERLING dosed fo New York 
at 4L7580. It ddaed in London at 

WMpewsam 

FFr10.0850 TFFrlO. 1260V, and 
Y239<Y2402S).Pa*e35 

THE NATIONAL Assodation of 
Securities Dealers of the US 
plans to toughen .the rules, far 
dealers on the Nasdaq market 
following last, month’s collapse 
in stock prices. Page 28 

NORSK HYDRO, Norway’s lar- 
gest publicly quoted company, 
has won the first round in a lad 
to block its SKr250m (S36_76m) 
deal to. sell two Swedish indus- 
trial gas subsidiaries and a stake 
izi a Finnish gas subsidiary' to 
Aga of Sweden. Page 26 

DEUTSCHE BANK, biggest' 
West Germany commercial bank, 
has taken a stake in Inunobi- 
lien-Holding Zimmer, a Cologne- 
baaed estate agent. Page 26 

KOWA- REAL Estate Invest- 
ment, Japanese property group 
whose shareholders Include N5s- 


PRESIDENT Honald Reagan yes- 
terday gave a cautious assess- 
ment of the outlook for a budget 
deficit reduction package. He 
said he was determined to 
achieve “at least . S23bn" in 
savings and that he was. "confi- 
dent we will get there one way 
oran other." 

In Brussels, EC finance minis- 
ters were also cautious in prom- 
ising to stimulate growth oi the 
European Community, provided 
there was a "substantial', revi- 
sion of the U§ budget deficit, 

Mr Reagan took a tough stance 
in a speech delivered. to the 
American Council of Life Insur- 
ance in. Washington, shortly 
after White House and Congres- 
sional negotiators had reassem- 
bled on Capitol Hill to renew 
their efforts to reach a deficit 
reductianaccord. 

He restated his opposition to 
tax increases and warned against 
the trade bill currently before 
Congress, which he cdled. -"eco- 
nomic dynamite." Mr Reagan 
once again put the blame on 
Congress for the huge budget 
deficit which the independent 
Congressional Budget Office yes- 
terday predicted would rise from 
S148bn to 4179.3bn in the cur- 
rent fiscal year. 

The President’s more tentative 
view of the possibilities for defi- 
cit reduction took markets by 
surprise. Negotiators have been 
expressing confidence in the 


West Germany and 
Japan urged to act 

British Prime Mfrristor Mar- 
garet Thatcher last night 
urged West Germany and 
Japan to expand their econ- 
omies in line with any cot in 
the US bndget deficit in 
order to avoid the risk of 
recession. In s speech In 
London, she pieced ss much 
emphasis on action by sur- 
plus countries as on that by 
the US. Her remarks r epre- 
sented a shift from recent 
comments. Page 24. 


will be triggered on Friday if no 
agreement is reached. 

Congressman Bill Gray, .chair- 
man of the House Budget Com- 
mittee, emphasised the hurdles 
still to be cleared, saying as he 
entered yesterday morning’s ses- 
sion that getting an agreement 
would be ‘‘rough/ 

Mr Gray said the problem was 
to find a "missing link* in budget 
savings. Senator Bob Packwood, 
a Republican, said later "We’re 
about S2bn short" 

As the talks go on, attention Is 
focusing increasingly on making 
the savings in the social security 


Fears over US tax policy 
depress shares and dollar 


BY JANET BUSH IN NEW YORK MO SIMON H0LBBIT0N M LONDON 


| SHARE PRICES and the dollar 
came under renewed selling 
pressure yesterday as financial 
market s retreated on comments 
by President Ronald Reagan that 
increasing takes- would be the 

“°* - 

Share markets ill London and 
New York were trading well 
before Mr Reagan made his 
remarks in a speech to the Amer- 
ican Council of Life Insurance. 
The dollar, which had been 
boosted by - the President’s pre- 
diction at the weekend that a cut 
in the deficit of up to S80bn 
could be achievable over two 
years, sagged in late London and 
early New York trading. 

The markets were further con- 
cerned by Mr Reagan’s statement 
that he .was determined to 
achieve a reduction in the deficit 
of at least . 32ftm. Analysts said 
the Gramm-Rudman-HoUings 
deficit reduction law provides 
for this as a matter of law. 

In London, the FT-SE 100 
share index closed 6.4 points up 
at . 1,684.7; having been more 
than 50 points higher during the 
day. A confi d ent earfy rally on 
Wall Street, which took the Dow 
Jones Industrial Average up by 
more, than 30 points within the 
first half-hour of trading, fal- 


Dollar 

against the Yen 
(Yen per $) 

146 
142- 
136 
134 

against the D-Mark 
(D-Mark per $) 

1.66 r 


London 



October 


tered after Mr Reagan’s com- 
ments. By early afternoon, the 
Dow index atood around 15 
points higher at around 1,950. 

“These swings .In prices do 
indicate just how fragile the 
recovery & and how susceptible 
the market is to disappoint- 
ments," said one London analyst 

Mr Reagan’s remarks came at a 
time when there were signs that 
European finance ministers 
would begin to reassert their 
authority over financial markets. 
In Brussels, the European Com- 


mission reaffirmed its committ- 
merit to existing exchange rate 
parities within the European 
Monetary System's exc h a n ge 
rate mechanism, and to a stable 
dollar. 

The dollar, which Jbad. traded 
as high as DiO.7175 in European 
dealing, lost Ife pfennigs and 
nimnwt me yen by the cl o s e in 
London Currency traders In 
New York remained sceptical 
and nervous about prospects fear 
an early accord an the US budget 
deficit. 

Currency dealers said US mar- 
kets were more pessimistic about 
the current deficit talks than 
seemed to be the case in other 
centres, partly because of a per- 
ception of deep political differ- 
ences between the parties 
involved In the negotiations, 
widely reported in the US press. 

In London the dollar dosed at 
DM1.7025 compared with, 
DM1.6880 on Friday and at 
Y 136. 50 compared with 135.90 
previously. 

The poind dosed at 41-7515 
compared with 1.7685 an Friday, 
and at DM2D82& compared with 
DM2B850 previously. The Bank 
of England s trade-weighted step-, 
ling index closed at 748 points 
compared with 75-3 points on fii- 
day. 


Court ruling boosts US stance 
on insider trading laws 


BY JAMES BUCHAN KNEW YORK 


THE US Government won a sig- 
nificant boost in its campaign 
against Wall Street insider trad- 
ing yesterday when the Supreme 
Court upheld the kav 1985 con- 
viction of a former wall Street 
JouraaL repeater, Mr Foster Win- 
ana. 

. But the ruling leaves a ques- 
tion mark against the main legal 
doctrine, behind the two-year, 
dampdown which has already 
led lo Dimple to plead guilty ter 


led lo pimple to plead guilty ter 
insider trading. 

Lawyers say the Securities and 
Exchange Commission and the 
criminal prosecutors can now 
proceed towards seeking indict- 
ments in two current cases, 
involving staff at the firms of 
Kidder Peabody, Goldman Sadis 
and Drexel Burnham Lambert. 

“We can go ahead full-bore", 
arid a jubilant Mr Gary Lynch, 
head of enforcement at the SEC. 


yesterday. But other lawyers 
believe that the court ruling will 
increase pressure in Congress for 
a dearer and more restricted def- 
inition of insider trading .than 
the SEC’s so-called misappropria- 
tion theory. 

“The ball is in Congress’s 
court," said Professor Alan Brom- 
berg, a leading expert in securL 
ties law at Southern Methodist 
University in Dallas. 

The Supreme Court yesterday 
upheld the convictions of Mr 
Wlnans and two other men for 
securities fraud and mail and 
wire fraud. Mr. Wlnans, who is 
now 37, a second former Journal 
employee, Mr David Carpenter, 
and Mr Kenneth Fells, a stock- 
broker at the Wan Street firm of 
Kidder Peabody , were convicted 
in 1965 for miming a stock-trad- 
ing ring that relied on advance 
information about the Journal's 


investment-advice column. 
Heard on the Street. 

Mr Wlnans, who was employed 
on the column from 1982, was 
sentenced to 18 months in prison 
and fined 35,000. The other men 
received smaller sentences. All 
the sentences were upheld on 
appeal in May 1986. 

The Supreme Court yesterday 
ruled unanimously that the men 
were guilty of mail and wire 
fraud in defrauding the Journal 
out of valuable property, namely 
"the publication schedule and 
contents of the Heard' column". 

But in upholding the group’s- 
conviction for breaking securi- 
ties laws, the court split 4-4. 
Lawyers say the court split 
leave? lingering questions about 
whether illegal insider trading 
actually occurs except in the tra- 
ditional case where a company 
official uses confidential infor- 
mation to trade. 


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.8S-41.4S 


ROMANIA 
PAYS THE 
PRICE OF 
CUTTING 
DEBTS 


-President NieoHne Ceansescu faces 
new problems after s successful 
crusade against foreign debts. Page 2 


Sri t-nwirng Buidaianaike takes a stand on 
violence — — — -■■■— 8 

Manageme nts Poland’s ex-po l itical prison- 
ers who do business with the state 18 

Turning the financial crisis into a 
drama — 22 

HiHfawiri comments Rules for the global 
imtfat ; Franco-German cooperation 22 

40 years ons Realities of the post-war 
world ... 23 

-Lex: UK food manufacturers; markets; 
New York Stock Exchange 24 

economy : Survey Section in 

Luxembourg: Survey' — Section IV 


D 8523 A 


system. 

In a bid to reassure the finan- 
cial markets, Mr Reagan stressed 
that it is not American policy "to 
drive down the dollar. Exchange 
rates that whip around with 
every shift in the wind make 
business reluctant to sail the seas 
of international commerce.’ 

"But enduring calmness on the 
currency markets must come 
from better co-ordination of eco- 
nomic polices among the major 
industrial countries. And that's 
why I was pleased by the recent 
action taken by Germany and 
other countries to lower interest 
rates. Co-ordination of policies 
that produce growth - that’s good 
for everyone and something the 
US continues to support." 

However, there were conflict- 
ing signals from Mr Gerhard 
Stoltenberg,the West German 
Finance Minister, about the 
extent to which he was willing 
to take positive action to stimu- 
late Ms own economy. 

Mr Nigel Lawson, the British 
Chancellor of the Exchequer, 
said he believed that West Ger- 
many "could do more” to pro- 
mote economic growth. "I think 
it is a concern shared by the 
West German Government," he 
added. 

At the same time he confirmed 
that talks were held yesterday 
between the four European 

Continned on Page 24 


Reagan to 
face attack 
over role 
in Iran 
arms deal 

By Lionel Baiber In Washington 

PRESIDENT Ronald Reagan 
and Mb Administration will 
be sharply criticised in a 
report due to be published 
tomorrow by the Congressio- 
nal committees on the Iran- , 
Contra arms affair. 

The 500-page repot on the 
joint House-Senate panel’s 
11-month inquiry will deliver 
a farther political blow to the 
embattled President. Bnt 
Republi cans have drawn up a 
150-page minority view more 
sympathetic to Mr Reagan. 

The report Is not expected 
to contain any significant 
new disclosures about the 
secret US arms sales to ban. 
and the subsequent diversion 
of profits to the Nicaraguan 
Contra rebels daring n Con- 
gressional ban on US military 
aid. Televised hearings on 
Oepitol HD1 *hi« summer gave 
extensive details of the affair 
and rejreacnted the political 
high-water mark of the eon- 


Mitterrand 
rejects arms 
allegations 


The report’s main thrust Is 
likely to be that Mr Reagan 
was responsible for allowing 
the normal rhennrls of gov- 
ernment to be ignored by key 
officials. Including Flee Admi- 
ral John Poindexter, then his 
National Security Adviser, 
and Lt Col Oliver North, the 
former White House aide. 
This will compound farther 
criticism of the President's 
lax management style and Ha 
leadership. 

include calls for tighter 
rep o rti n g by the e x e cuti ve to 
Congromm of M covert 
operations," the undercover 
work by the Central Intelli- 
gence Agency (CIA) ■<—4 at 
destab Using foreign gover- 
menta hostile to the US. 

The main contention 
between Democrats and 
RepnbHeaas was whether Mr 
knew of the di version 
of fends to the Contras. The 
Inqniry has been enable to 
r e s olve the iesne because key 

rfn famptitK —i* sh r ed d ed and 

several witness were consid- 
ered unreliable or unco-opera- 
tive. Another shadowy 
aspects of affair —witfc«dy 
to he resolved is the role of 
Mr William Casey, the CIA 
director who died this year 
from brain cancer. 

by no^^^defiadfvori 
on the worst foreign policy 
fiasco in the seven-year 
Reagan pre sidenc y. A grand 
jury is i nve s ti g atin g the crim- 
inal aspects of the affair, and 
indictments are expected 
before the end of the year. 

The Iran-Contra commit- 
tee's effort to produce a 
bipartisan report was torpe- 
doed by political divisions 
between Republicans and 
Democrats. 


BY IAN DAVIDSON IN PAMS 

FRENCH PRESIDENT Francois 
Mitterrand last night rejected 
allegations that he had been neg- 
ligent in not preventing illegal 
arms sales to Iran in 1985-86 and 
categorically denied that the his 
Socialist Party had benefited 
financially from these sales. 

He confirmed in a radio inter- 
view that he had indeed been 
informed in May 1984 that the 
secret services suspected an ille- 
gal arms trade with Iran, saying 
that he had shortly afterwards 
spoken about it to Mr Charles 
Hemu, who was then Defence 
Minister. 

"The Constitution has not 
given me the task of checking up 
on the permits of arms exports, 
he added. So long as the compe- 
tent authorities did not come 
back to him with further evi- 
dence of illegal sales, then I am 
entirely justified in thinking that 
the rule which I laid down was 
no longer being broken," he said. 

. As for the allegations widely 
put forward in the conservative 
press - that the Socialist Party 
had received large commissions 
from the sales to Iran - President 
Mitterrand said he would put his 
hand in the fire to deny it He 
said that the way in which the 


ostensibly secret Barba Report 
on the arms scandal had beat 
'leaked to discredit the Socialist 
Party was itself an immense 
moral scandaL 

At the same time, he called on 
the conservative Government to 
table immediately legislation to 
regulate the finances of the polit- 
ical parties and to {dace a ceiling 
on election expenses. 

' He was prepared, if necessary, 
to agree to a special pariiamen- 
.tary session in January. This 
would be in order to complete 
the necessary legislation before 
the presidential election, "so as 
to be able to finish, once and for 
.all, with , this question which has 
poisoned the life of the Republic 
for a hundred years.” 

Reuter adds: The secret report, 
leaked two weeks ago, said the 
arms sales comprised half a mil- 
lion artillery shells between 19S3 
and 1986 under the previous 
Socialist Government. 

To get round the arms 
embargo, export licences were 
made out to other countries with 
the knowledge of Defence Minis- 
try officials, according to the 
report compiled by armed forces 
inspector-general Jean-Francois 


Holmes a Court 
sells Fairfax stake 


! BY DAVID WALLER IN LONDON 

MR ROBERT Holmes a Court, 
the Australian entrepreneur 
whose business empire has been 
most savagely hit in the month 
since "Black Monday", yesterday 
took further steps to ease his 
financial difficulties with the 
disposal of his 8.8 per cent hold- 
ing in John Fairfax Ltd., the 
Australian media group. 

The sale of the shares by J.N. 
Taylor Holdings an investment 
vehicle controlled by the Bell 
Groinx 45 per cent owned by his 
family, rased A4225m (4 154m) 
in cash. It follows only days after 
Friday's disposal of a portfolio, of 
business p r o p erties in Perth for- 
A$206m. 

Together, the two disposals 
will help Mr Holmes a Court's 
parlous cash position. A series of 
acquisitions in the run-up to the 
market crash had left, the Bell 
Group with borrowings 
approaching $A2bn and an 
annual interest bill of an esti- 
mated A$280m. 

Assets consisted mainly of 
stakes in quoted companies such 
as Sears, the UK retail giant, and 
T ex a c o, the oil major, the value 
of which plummetted in line 
with the market as a whole. The 
scale of the borrowings far 
eclipsed the reduced asset value. 


and consideration of this 
prompted shares in Bril Group, 
to fall 85 per emit from their 


Mr Holmes a Court has sold his 
Fairfax shares to Tryart, a com- 
pany controlled by Mr Warwick 
Fairfax, a 26-year-old scion of 
Australia's long-established pub- 
lishing family. 

Bell Group used its holding in 
Fairfax as leverage during nego- 
tiations to buy from Fairfax the 
Australian Financial Review and 
a number of other publications 
for a total of SA475. Bell and 
Fairfax issued a statement yes- 
terday saying that this transac- 
tion was not frustrated by Mr 
Holmes a Court’s decision to 
accept the cash offer. 

"Although the disposals resolve 
Bell's short-term cash problem, 
the company's balance sheet 
must still be restored," said an 
analyst from Australian brokers 
McCaughan Dyson. 

Through the many tentacles of 
his empire, he owns 10 per cent 
of T exac o; 82 per cent of Sears; 
15 per cent of Standard Char- 
tered Bank; 32 per cent of BHP, 
Australia's lamest company - and 
52 per cent of Morgan Grenfell, 
the UK merchant bank. 


TT T&rfdsixxkmaricetprices have 
V Vcomiiued to slide, due pre- 
dominantly to the failure of the US 
authorities to do anything about 
their budget deficit 

This means thatmostof 
theworid$ieac^a)mpanies,whfe 




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Financial Times Tuesday November 17 1987 


EUROPEAN NEWS 



MINISTERS PONDER PROPOSALS FOR CURBING CEREALS PRODUCTION 


EC farmers may be paid for growing less 


BY QUENTIN PEB. M BRUSSELS 


FARM MINISTERS from the 
European Community were last 
night considering the outline of 
n plan to control European cere- 
als production. The Idea was 
presented here by Mr Frans 
Andriessen, the Agriculture 
Commissioner, in a new attempt 
to break the deadlock over Com- 
mon Agricultural Policy reform. 

Negotiations are expected to 
continue for much of this week 
on the Commission's proposals 
for budget stabilisers, measures 
designed to trigger price cuts and 
subsidy reductions for a wide 
range of agricultural commodi- 
ties when production targets are 
reached 

Most observers agree that the 
kt>y sector is cereals, where the 


cost of Community support has 
substantially 


risen substantially in recent 
years and where large surpluses 
are forecast for the rest of rhe 


decade. 

The Commission's suggestion 
of a ■Set-aside" scheme - essen- 
tially paying farmers to grow 
less - has been devised as a com- 
plement to the price reductions 
and increases in the so-called 
co-responsibility levy (or pro- 
ducer tax) which Brussels would 
like to impose when the Euro- 
pean cereals harvest exceeds 
158m tonnes. 

The latest Andriessen plan 
would in practice build on the 
existing extensification scheme 
agreed earlier this year. This 
already applies to wine, beef and 
cereals, is obligatory on all mem- 
ber states, and involves pay- 
ments by national governments 
to farmers who can reduce their 
output by 20 per cent 

Under the new scheme all ara- 
ble land would now be included; 


Brussels would fix a minimum 
level of compensation 80 that 
member states would be forced 
to make it an attractive option; 
t hese _ payments could vary 
according to productive capacity 
of the land involved; the level of 
funds provided by Brussels could 
vary according to member state; 
und new measures would be 
introduced to control fraud. 

■We want this to be compul- 
sory for member states, but not 
compulsory for Individual farm- 
ers." a Commission official 
emphasised last night 

Mr Andriessen^ enthusiasm 
for a more substantial set-aside 
scheme was greater than some 
diplomats had expected. But the 
Commission's decision to pro- 
duce an outline paper at this 
stage is understood to have fol- 
lowed intense political pressure 
from West Germany, which is a 


keen supporter of the Idea. 

The Andriessen plan is still 
somewhat bald at this stage, has 
not yet been discussed by a full 
meeting of commissioners, and 
could be modified or expanded 
as the negotiations this week, "It 
will start the ball rolling," one 
Commission official suggested 
last night. 

Mr John Gumraer, Britain's 
junior Farm Minister, warned 
that there were some member 
states who saw set-aside as a 
substitute for price cuts and 
other budgetary action. "We 
think the Commission is on the 
right lines but it must be a com- 
plement to other measures." 

• The Commission yesterday' 
toughened its proposal for the oQ 
seeds sector, calling for deeper 
price cuts when output thresh- 
olds are exceeded. 





Andriessen: more enthusias- 
tic than expected 


Differences 
narrow on 
troop cuts 


Attempt fails at further EC steel closures 


BY WILLIAM DAWKINS IN BRUSSELS 

THE European Commission's But the report mentions no extra 


attempt to encourage steeLmak- closures beyond the 15m tonnes 
ere in the European Community or so alrei 


By Judy Dempsey M Vienna 


THE GAP is narrowing between 
the 23 member states of Nato 
and the Warsaw Pact meeting 
informally here to consider new 
ways of reducing conventional 
forces in Europe, according to 
Western diplomats. 

The informal talks began last 
February with the aim of giving 
a fresh impetus to cutting con- 
ventional forces. Once the talks 
receive a mandate from the Con- 
ference on Security and Cooper- 
ation in Europe (CSCE), the 
framework in which the talks 
will take place, the deadlocked, 
14-year-old Mutual and Balanced 
Force Reduction talks will be 
phased out. 

Over the past two months, the 
two sides nave been meeting 
twice a week Instead of the usual 
once. The atmosphere has been 
described as "good and reason- 
able," with each now considering 
the other's draft documents on 
ways of reducing conventional] 
forces. 

During yesterday's meeting, 
Nato clarifed what It regards at 
the objectives of talks. 

In its draft document on ‘con- 
ventional stability," which it 
presented on July 27, it listed 
three objectives: the establish 
merit of a stable and secure bal- 
ance of conventional forces at 
lower levels; the elimination of 
disparities prejudicial to stability 
ana security; and the elimination 
of the capability of launching 
surprise attacks and initiating 
large scale offensives. 

"We are now undemanding 
each other much better," a West- 
ern diplomat commented. “Both 
sides are working hard to come 
closer." 

One of the more difficult 
issues, however, remains to be 
tackled. This concerns the scope 
of the talks. Nato insists that the 
new forum should focus specifi- 
cally on conventional arms. The 
Warsaw Pact, in contrast, pro- 
poses that short-range nuclear 
weapons and some tactical avia- 
tion systems should be covered 
in the negotiations. 

•The US and the Soviet Union 
resumed high-level talks on Mon- 
day aimed at clinching the first 
treaty to cut their nuclear mis- 
sile arsenals in time for a super- 
power summit in Washington 
next month, Reuter reports from 
Geneva 
Chief negotiators for both sides 
said they were confident a pact 
to eliminate all intermediate- 
range nuclear missiles, more 
than 1.000 rockets, would be 
ready for signing at the Decem- 
ber <10 summit. 


to close surpl 
understood 
extract any extra closures. 

Mr Karl -Heinz Narjes, the 
Industry Commissioner, will 
today present to a full meeting 
of his 16 colleagues a long- 
awaited report on EC steel over- 
capacity by an independent' 
panel of "three wise men." 

The details of the study are 
being kept secret until Wednes- 
day, so that Commissioners have 
a chance to discuss it privately. 


closures beyond 

ready agreed by Eurofer, 


as the 


the club of big integrated steel- 
makers. according to EC offi- 
cials. That is around half the 
30m tonnes of annual production 
which Brussels estimates must 
be shut down to bring steel 
capacity in line with market 
demand. 

One of the main barriers to 
further capacity cuts is the West 
German producers' continued 
insistence that there is no need 
for the industry to make prom- 
ises of capacity reductions. 


Because West 
largest producer, has the 
single share of steel over-capac- 
ity in the EC, its refusal to coun- 
tenance plant closures has made 
it impossible for the three -wise 
men to extract sacrifices Cram 
other member states. 

The panel's apparent failure to 
crack the problem was widely 
expected. It increases the likeli- 
hood that the Commission 


will 

be forced to carry out its threat' 

to scrap the seven-year-old ays - good time for EC Industry M 
tern of output quotas at the.end- tore to be prepared for what will 
of the year. If Brussels does get be a controversial debate at their 
promises of adequate cuts, it is next session In early December. 


planning to run down the 
system over three years ana pro- 
vide closure aids and incentives. 

One diplomat said: "If they 
were indeed wise men, they 
would recommend that the 
quota system should end because 
the preconditions for it to con 
tinue are not there." 

The Commission will not try to 
reach a final position on the 
steel report until its next full 
meeting on November 25, in 
good time for EC Industry Minis- 


Italian coalition parties open 
arms to wayward Liberals 


BY JOHN WYLES M ROME 


LEADERS OF the remaining four 
parties in the Italian coalition 
brought down at the weekend 
yesterday turned a blind eye to 
human error and seemed com- 
mendably ready to offer divine 
forgiveness to the country's way- 
ward Liberal Party. 

In consultations with Presi- 
dent Francesco Cossiga, all said 
that they hoped that the Liberals 
would be enticed back into a 
newly formed five-party coali- 
tion. Both the Christian Demo- 
crats and the Socialists were 
shed with loyalty towards 
their diminutive junior, compet- 
ing for liberal support in some 
future bottle just as they com- 
pete for everything else. 

For their part, the Liberals 
showed some eagerness to return 
from the wilderness into which 
they strode last Friday night 
when they quit the Government 
and prompted the resignation of 
the Christian Democrat Prime 
Minister. Mr Giovanni Goria. 

Officials at the Quirinale Pal- 
ace, where the President works, 
were too discreet last night, to 
reveal the depth, if any, of the 
President'a amazement. But Mr 
®iga may be allowing himself 
a. few harsh thoughts about Lib- 
eral antics given the embarrass- 
ment he has suffered in cancel- 
ling a state visit to London 
which was due to start today. 



tiny party to pull its single min- 
e) and three under- 


Gdria: extra problem 


Not that a Liberal return 
should be taken for granted. 
EiLher tonight or tomorrow 
morning the President is expec- 
ted to ask Mr Goria to form a 
second administration, and it 
will be up to the youthful Pre- 
mier to draft a political pro- 
acceptable both to the 
other parties. 

As far as the Liberals are con- 
cerned. he will have to supply 
undertakings on public spending 
cuts whose absence from the 
1988 draft budget prompted the 


ister (Defence, 
secretaries out of the Govern- 
ment. 

The other Liberal preoccupa- 
tion - the Government's failure 
to honour a promise over tax 
cuts - was significantly missing 
from -the party’s public utter- 
ances yesterday. 

Mr Bettino Craxi, the Socialist 
party leader, may have pres- 
ented Mr Goria with an addi- 
tional problem yesterday by sug- 

g esiing - through Mr Claudio 
lartelli, his deputy and favour- 
ite^ public -adress system • that 
the parties . also needed to agree 
oruUte-4 Wails of judicial reform 
■ and nOcteor energy policy. 

This could string out the pro- 
cess of governmental rebirth 
and. as ever. It was not clear 
whether Mr- Craxi intends to 
exploit the situation to win what 
he wants on these issues or 
whether he is starting to play a 
deeper game. 

•The renaissance which the 
Italian economy has experienced 
in recent years is analysed In a 
12-page survey which appears 
today (section II). The survey 
was written before the latest 


e olitical developments In Rome 
ut deals largely with issues and 


ut deals largely 

which remain unaffect- 


t rends 
ed. 


Union rebels seek joint action 


Ankara holds 

returning 

Communists 


By David Barehard In Ankara 

THE TWO top leaders of the out- 


op a 
>-Mc 


BY JOHN WYLES 

FEARS OF legal restraints on the 
right to strike in Italy have 
>mpted the first moves 
towards common action among 
the rash of rank-and-file commit- 
tees whose strikes are disrupting 
a variety of public services. 

At a weekend meeting in 
Rome, representatives of workers 
in a broad range of public ser- 
vices decided to try to organise 
demonstrations in defence of 
"the right to strike’ on December 
12. 

In the meantime, further unof- 
ficial stoppages by train drivers 
look likely sometime this month, 
while domestic and some inter- 


national air services will be the 
main casualties on most days 
this week. Though ' the official 
trade unions are formally lead- 
ing a pay dispute with Alitalia, 
the national airline, rank-and- 
file members will again be 
ing unofficial stoppages In 
tion to union -sanctioned action 
designed to avoid maximum dis- 
ruption. 

By contrast many of the repre- 
sentatives of the unofficial com- 
mittees or public sector employ- 
ees present at the weekend 


meeting in Rome are presenting 
iseh 


United (Sammunist Party flew 
back to Ankara yesterday and 
were arrested by police as they 
left their aircraft. 

The arrests were the latest 
move in a war of nerves between 
Turkey's exiled Communists and 
Mr Turgui Ozal, the Prime Minis- 
ter. 

The two men, Mr Nabi Yagci, 
the Communist party secretary I _ 

general, who uses tne political ( FROM mis s umm er Hungarian 


themselves as an alternative to 
orthodox unionism. 


About 1,000 people attended 
the gathering which had been 
called at the initiative of the old- 
est rank-and-file group, the 
schoolteachers. Formed in 1985, 
this group's name, “Cobas," has 
become the shorthand term for 
describing the broader phenome- 
non. 

Although the common thread 
at the meeting appeared to be 
severe discontent with the public 
sector pay deals negotiated by 
the unions this year,, there was 
no dear agreement between the 
various groups about whether 
they should co-ordinate their 
activities. 


Community 
call 


on ozone 


By vraiam DawUns in 


LEADING consumer and envi- 
ronmental lobby groups in the 
European Community yesterday 
called on .the Commission to pro- 
duce an "action plan" against 
chemicals which endanger the 
ozone layer. 

The Bureau of European Con- 
sumer Unions (BEUC) and the 
European Environmental Bureau 
(EEB) say the first step should 
be an immediate ban on the use 
of chlorofluorocarbons (CFCS) in 
aerosols. They are calling for an 
85 per cent cut in the amount of 
CFCs put into the air over five 
years. This is the minimum 
needed to stabilise the actual 
concentration of CFCs in the 
atmosphere, they claim. 

Chlorofluorocarbons are impli- 
cated in depleting the ozone 
layer, which filters out harmful 
radiation from the sun. The 
demands are contained 
a letter to Mr Stanley Clinton 
Davis, the Environment Commis- 
sioner. They urge Brussels to 
take stricter, action than is laid 
down in a agreement signed in 
Montreal in September between 
the 30 main CFC-producing 
countries. 

"We acknowledge that the 
Montreal protocol is an impor- 
tant first step. ..From an environ- 
mental point of view, however, 
the measures are totally inade- 
quate," says the letter. 

Under the Montreal accord, 


CFC consumption would be Iro- 


zen at 1986 levels by 1992, fol- 
lowed by stepped reductions in 
consumption of 20 per cent and 
50 per cent BEUC and the EEB 
estimate that a ban on CFC in 
aerosols for all but essential uses 
would bring an instant 45-47.5 
per cent cut in emissions. 

"The use of CFCs in foamed 
plastics, refrigeration and 
cleaning can also be reduced 


considerably," leading to another 
drop in emissions of 31 


to 35 per 

cent, says their letter. 

A Commission official said 
Brussels would decide on the sci- 
entific evidence whether to ask 
for sharper reductions than 
envisaged in the Montreal 
accord. 


Brussels 


tax ideas r 
given cool 
reception 


By Quentin Pm! 

EUROPEAN Community 

finance minister* yesterday 


S ve a very aneuthotfastlc 
at m 


to 


reception to the Com- 
mission’s plans for coordi- 
nating Indirect taxation 
throughout the EC, -. 

They were presented by 
Lord CockOdd, the Commis- 
sioner responsible for 

removing all barriers 
Internal trade, with 
three-phase programme 
which would lead to a deci- 
sion on broad tax “appruxl 
nation" by the end of 1988, 

However, they opted 
Instead for a thorough 
study to be undertaken into 
the economic consequences 
of changes In value added 
tax and excise duties - 
device which could veOjmt 
off any decision much W 
ger. 

Among many critics, Mr 
Nigel Lawson, the Britialr 
Chancellor of the Exch 
quer, was adamant that 
there could be no move , to 
raise the zero rates of VAT 
on food, fuel and children** 
clothes In the UK-a# prom* 
Ised by himself and Mrs 
Margaret Thatcher, the 
Prime Minister, dnring the 
general election campaign. 
He gave no pledge on zero 
rates on such items as 
books and construction. 

Lord Cockfield’a propos- 
als would call into question 
special VAT rates outside 
two' broad bands - from 4 to 
9 per cent for sodaUy-nec- 
essary goods and servdees, 
and front 14 to 20 per cent 
for all other Items. 

He presented his plan as a' 


crucial part of the drive toi 
slnJ 


complete a frontier-free 
de market In the EC by the 
deadline of 1992, set by the 
12 heads of government. 

The leading opponents of 
the plan, apart from the UK, 
are Denmark, Ireland and 
Luxembourg; all of whom 
have serious problems in 
changing their indirect tax 
rates. 

Both Denmark and Ire- 
land have very high indirect 
tax rates, and any drop to 
20 per cent would require 
significant increases in 
other f 


forms of- direct taxa- 


tion. Luxembourg has very 
and 


low Indirect tax rates, 

relies on them to attract all 
forms of business from 
neighbouring member 


Greek cabinet 
team begins 
Albania visit 


By Amfriana lenMfisconou In 
Athens 


A GREEK cabinet .team led 
by Mr Karolos Faponliao, 
the Foreign Minister, begins' 
two-day official visit to 
Alba iris today; In a display 
of the warmest relations 
between the two Balkan 
neighbours since the Second 
World War. 

Mr Paponlias was accom- 
panied to Tirana by Ms Mel- 
ina Mercouri, the Minister 
of Culture, and the Minks-' 
ten of Commerce ud Pub- 
lic Works. 

Albania’s main export 
Item to Greece is electric- 
ity; Greek exports to 
Albania include coaL Last 
year the trade balance lay 
heavily in Albania’s favour, 
with exports to Greece 
totalling 321m against 
Imports from Greece worth 
Mm. 

The two countries have 
signed framework agree- 
ments for co-operation in 
banking and tourism, the 
latter reportedly including 
plans for a possible ferry 
link between Igonmeaitsa 
on the western Greek main- 
land coast, the island of 
Corfu and Albania. 


Concern grows in 
Bonn at dam age 


to export trade 


BY PETER BRUCE IN BONN 


IN A SHARP departure from its 
cheery statements immediately 
r last 


after last month's downturn In 
world stock market values, Wat 
Germany's Economics Ministry 
warned yesterday that the coun- 
try’s- exports were being noticea- 
bly damaged and that overall 
economic development was 
being threatened. 

A ministry statement said that 
"new factors," the continuing fall 
of the US dollar against the 
D-Mark, 'could place a burden 
on overall economic develop- 
ment." 

"Without doubt," the statement 
said, "at the current level of the 
dollar exporting would be mark- 
edly handicapped." The Govern- 
ment is growing alarmed as 1c 
becomes dear that although the 
US accounts for only 10 per emit 
of West German exports, West 
German companies making high 
technology or luxury products 
frequently, rely on the ITS mar- 
ket for a much bigger percentage 
of their sales antiln some cases 
far almost all of their growth. 

Porsche, for example, has been 
forced to cut production because 
of falling sales in the US. 

. Returning to its -more tradi- 
tional -dogged optimism the min- 
istry insisted, though, that 
domestic demand was "winning 
the upper hand” in Wen Ger- 
many. Indeed, figures produced 
yesterday by the IFO economic 
institute in Munich show capac- 


ity utilisation in West German 
factories in the third quarter of 
this year still at a high 845 per 
cent’ . . 

A tax cut worth DM14bn next 
year would give a further push 


to domestic growth, the ministry 
calm both 


claimed in an effort to i 
foreign and domestic pressure on 
Bonn to push home growth even 
faster. Its statement coincides, in 
fact, with fresh demonstrations 
of just how difficult it could be 


to add anything more than tech- 
ana not i 


nicoL anc 


domestic demon 


political. 


fuel to 


Trade unions are up in arms 
and threatening nationwide dis- 
ruptions following an experi- 
ment to relax shopping hours in 
Hamburg. Last Thursday the city 
state's shops stayed open until 
9pm, drawing more than 120,000 
extra shoppers into the city cen- 
tre. All west German shops nor- 
mally close at 6.30pm and 
defenders of the system, includ- 
ing the large retailers, argue that 
no-one would shop if they 
opened any longer. 


in another attempt to stop the 
liberalization of a rigid, mono- 
polised West German market, the 
main postal union yesterday 
announced the beginning of a 
major campaign to prevent the 
Bundespost being relieved of its 
near total monopoly over the 
supply of communications equip- 
ment and services. 


FDP drops opposition to 


tougher protest laws 


BY PETER BRUCe 

MUCH to the relief of conserva- 
tives in Chancellor Helmut 
Kohl’s West German coalition, its 
junior partners,- the liberal Free 
Democratic Party (FDP), have 
finally agreed to support the 
imposition of ^tougher demon- 
stration laws. 


argued that making the wearing 
of masks a crime would mean 
that masked demonstrators even 
at peaceful protests would have 
to be arrested, - thus increasing 
the tension at such gatherings. 


The move, agreed late on Sun- 
FDP leac 


However, the public outcry for 
Ftaxuatot 


day by the FDP leadership, ends 
years of coalition infighting on 
the subject and was virtually 


tougher laws since the 

" ling? h«. 

the FDP to withstand. Neverthe- 


forced on the party by the fatal 
er this month of 


shooting earlier 
two policemen, by demonstrators 

at Frankfurt airport. 

Not surprisingly, the decision 
was warmly greeted by the other 
small parte in the coalition, the 
Bavarian Christian Social Union 
CSLT), led by Mr Franz Josef 
trauss. He and the FDP have 
clashed frequently in the past 
three years over the- latter’s 
sgedly lax attitude towards ■ 
internal security. - 
-Sunday's decision' means,- 
mainly, that. efforts to makeic a 
criminal offence to wears' mask 
at a demonstration will win 
approval hi Parliament. Masked 
demonstrators are common at 
West German protests and often 
lead to clashes with police. 

In. the past, the FDP has 


less, its decision to drop opposi- 
tion to tougher laws is under- 
stood . to have been opposed 
strongly on Sunday by Mr Hans- 
Dietrich Genscher, the Bonn For- 
eign Minister and a former FDP 
party chief. 

The masking controversy 
seems likely to scale new heights 
soon, as a clash threatens 
between hundreds of squatters 
In three valuable properties on 
Hamburg's Hafenstrasse and the 
ciQt authorities. , 

.The squatters, most :of them 
masked, have barricaded them- 
selves into the buildings and the 
city Is committed to evicting 
them. Many newspaper reports 
suggest the squatters - who have 
become a national spectacle - are 
armed and that attempts to 
remove them by force could be 
bloody. 


Portuguese budget aims 
for slower expansion 


BY PETER WISE M LISBON 


THE LISBON Government yes- 


terday unveiled a budget for 
slow the. 


next year which rims. to : 


pace of economic expansion by 
demand but 


restraining domestic 
at the same time maintaining 
steady capital Investment 
growth. 

In the proposals presented to 
Parliament tne budget deficit is 
set at Es471bn (SlBbn), repre- 
senting 8.37 per cent of gross 
domestic product. This is a slight 
decrease from the 1987 deficit, 
which is forecast at 8.74 per cent 
of GDP. 

The budget would show a 
slight surplus if the Es487,7bn 
cost of servicing the public debt, 
representing 26-2 percent of total 
expenditure, were discounted: 

r Miguel Cadilhe, the 
Finance Minister, said that tax 
revenue would be increased by 
one percen tage point of GDP in 
relation to 1987 as part of an 


effort to cut the growth of 
domestic demand by half to 
around 4 per cent next year. 

He stressed that strict 
restraints would be placed on 
public spending except in areas 
of capital Investment needed to 
modernise the economy. "We 
have to strike a careful balance 


gether, 

Credit growth and foreign 
exchange policy would be closely 
harmonised with the budget to 
achieve GDP growth of 3.75 per 
cent In 1988, compared with a 
forecast 5 per cent this year. 

An area of public expenditure 
has been left open so that Portu- 
gal can meet its share of invest- 
ment projects funded bjj the 


European Community, the level 

rhieh 


of which will not become clear 
until after the EC agrees on its 
own budget. 


Robin Archer in Budapest reports on East-West opposition to Danube dam project 


Hungarian Greens test dissident rules 


en- 


alias Haydar Kutiu, and Mr 
Nihai Sargin, head of a small 
left-wing party which recently 
merged with the Communists, 
now face trio] in a state security 
court and a possible jail sentence 
of up to 15 years for anti-state 
activities. 

They were accompanied by a 
delegation of Communist and* 
ecologist European Members of 
Parliament 


FINANCIAL TIMES 
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vironmentalists have been able to 
apply for finan ci al assistance from 
a private source: the newly formed 
Danube Foundation. It is a sign of 
the growing confidence and import- 
ance of Hungary’s Greens. 

Unlike most Hungarian 
movements, environmentalism 
seems to have an appeal which ex- 
tends beyond a small core- of intel- 
lectuals. Students are tbe most 
significant source of support When 
law students recently devoted a 
whole issue of their semi-legal in- 
house journal to environmental 
problems, it sold like hot cakes. 
There is also support in rural areas 
where environmental protection 
dubs have begun to appear. 

By far the most important con- 
troversy centres on the construct- 
ion of the Danube Dam. TheGabd-- 
kovo-Nagymaros Barrage System, 
as the Government prefers to call it, 
is a joint Hungarian-Csechoslovak- 
ian venture formally agreed in 1977. 


the first Eastern European group to 
win the £25,000 “Alternative Nobel 
Prize." The cash is being used to 
launch the Danube Foundation. 

Tbe group's first aim was to 
break the secrecy surrounding the 
proposed dam and draw attention 
to its consequences. They pointed 
mit, for example; that tbe dam 
threatened the country’s largest 
reservoir of drinkable water. Over- 
use of fertilisers and pesticides has 
left about 300 Hungarian villages 
without drinkable water. 

A petition was circulated calling 
on the Government to halt work 
and carry out a detailed study. 
More than 7,000 people signed - a 
success by Hungarian standards. 
Not since 1956 has an independent 
movement openly received so much 
support. 

The Government ordered a de- 
tailed study while officially ignor- 
ing the petition. 

Prominent environmentalists fol 


porters. links with- West German 
and especially Austrian Greens 
have also been established. The 
West Germans are the inspiration 
while the Austrians have a more di- 
rect involvement 
Last year Austrian investors be- 
came a third partner in-tbe dam 
venture. A transmission line wiD be 
built linking the Hungarian and 
Austrian electricity grids, and the 
Austrians will be piud with tbe elec- 
tricity from tbe dam: 12,000. mega- 
watts a year from 1996 to 2015. 


of Austrian members of 
has met with members 
of the Danube Grate. 

The dam. It seems, will still go 
ahead. Nevertheless, environmen- 
talists are nfalming some important 
achievements. Mr Ivan Baba, a 
le a ding member of the Danube Cir- 
cle, stresses tbe broader political 
implications of the movement A 
new area of debate has been 
opened up, environmental con- 
seriousness has spread rapidly and 
the official press has begun, to write. 


placed by increasingly repressive 
measures. 


A joint Hmt gariftn-Ay^ trinn pro- ®hout these issues, 
test was organised in Budapest and But, more important still, there 
then called off after threats from has been what Mr Baba calls "a 
the police. A bus load of Austrian te a min g experience of organised 
Greens decided to carry on regard- opposition." For the first time since 


The Government clearly feels un- 
iter some pressure from the envir- 
onmentalists. According to the Bu- 
dapest Secretary of the Party's Pa- 
triotic Front, “the ecological move- 
ment helped raise tbe problem of 
the environment... toe Govern- 
ment was not doing enough.” There 
Is conflict, he says, because toe en- 
vironmentalists wanted to be 
“competitors in politics" rather thwi 
"partners in debate." 


less and there was a minor scuffle 
with police. 

Subsequently, 80 Hi 
placed.an advertisement in 
trian daily Die Presse calling on the 
Austrian public to pot pressure on 
their Government to pull oat af the 


zrsrrsrrr 9 towed UD this success by seeking project They m^ued that toe ; never been strong. The ’ masses o-h™ *rhev believe 

preselection in eight Budapest elec- Austrian Go^nimmt vras taking have teamed that there are ways to have no influence. But we showed 
pie along a 270km stretch of the «.»,] <■ ih. i. u<m. advantMe of the lack of HAnoarisn (gtnffiss dissent* hp ™ 


Unahte to incorporate the envir- 
onmentalists, the Government has 
resorted to what a recently leaked 
Central Committee document de- 
scribes as "administrative mea- 
sures." Passports have been with- 
held and' one member of the Da- 
Mif. Baba claims they have sac- nube Cirate tost his job. 

However, the environmentalists 
tutoonal, liberal way^ m a remain optimistic. The majority of 

Hungarians, are very passive, "says 


1956, dissent has not been limited to 
an "isolated am*!! group of intellec- 
tuals.” 


country where that tradition has 


pie along a 270km stretch of the 
Danube. 


In September 1984 a group of en- 
vironmentalists formed the "Da- 
nube Orate” and have since become 


(oral districts in the run-up to Hun- 
gary's first multi-candidate elec- 
tions. They were foiled when local 
party bosses packed toe preselec- 
tion me e tin g with their own 819- 


advantage of the lack of Hungarian 
democracy. 

Pressure from Greens 
the construction of an Austrian ver- 
sion of toe Danube dam. Since then, 


express dissent,” he says. ' that opposition is possible. The next 

It is these broader political impli- five to 10 years is a period ofpossfb- 

..lul tv. a . iPLi. v. ..... 


cations which the Government 
most fears. Initial toleration of tbe 
environmentalists has been re- 


ility." This may be over-optimistic, 
but it nicely captures the mood of 

rhflngg in H ungar y today. 


Airport feud threat 


to Gibraltar talks 


BY DAVID WHITE IN MADRID 


FIERCE OPPOSITION in Gibraltar 
to any Anglo-Spanish deal on the 
colony's airport overshadowed talks 


officials here yesterday. 

The talks are aimed at resolving 
tbe thorniest practical issue in the 
negotiations about the future of the 
Rock - the joint use of the airport. 

The visit by Mr David Ratfbrd, 
A s sistant Undersecretary at toe UK 
Foreign Office, was in preparation 
for a meeting here in two weeks’ 
time between tbe foreign ministers 
of the UK and Spain. Sir Geoffrey 
Howe and Mr Francisco Fernandez 
Ordonez. 

Both sides are looking for a 
breakthrough on the joint use of 
the airport to avoid further embar- 
rassment when EC transport minis- 
ters meet next month to consider 
their air liberalisation package, 
held op since June because of tbe 
Gibraltar issue. ; 

-Diplomats said further talks were 
likely to be arranged in London 
next week to fry to onbtock toe is- 
sue. It has been under discussion 
since Madrid and London agreed 
three years ago on a negotiating 


programme. The airport is particu- 
larly sensitive since it is on the part 
of the colony over which Spain con- 
siders it has the strongest sover- 
eignty claim 


Britain is ready to introduce a 
system whereby passengers land- 
ing in Gibraltar on flights from 
Spanish airports-- but not from oth- 
er countries - would be able to 
directly into Spain without first 
checking through British customs 

mid passport control 


It is also proposing to include a 
declara t io n malting riimr that nPith- 
er side's position on sovereignty 
would be affected by such an ar- 
rangement This is semi as serving 
both as a concession to Spain and 
as comfort tor Gibraltarian opinion. 


However, the proposals fall short 
of Spanish demands, which include 
a Snare in the r unning of the Royal 
Air Force-controlled airport. Mean- 
while, toe campaign in Gibraltar 
against concessions of any land has 
crystallised since Mr Ratio rtfs visit 
there last week, when a large de- 
monstration was staged on the is- 
sue. 




:;nptn 

vide 




9 







FmandalllinesTuesday November 17 1987 


Vs n 
? 


AMERICAN NEWS 




to 




investment 10% 


wr DAVID OARON^t Ht MEXICO CITY 


MEXICO Is to increase public 
investment Iry JO par cent ui real 
terns next year, the first real 
- . t increase since the foreign debt 
crisis broke in 1882 ' v?.- 

-V The increase is to-be pahl for 

out of cuts in 'current expmdl- 
C ture - however, according to’ the 
outline of the 1988 budget; - 
which is due to be-Twesented to 

■ Congress later this week. 

The basic theme of the' docn- 
•' ment is continuity of policy. It is 
drafted to convince the jjubiic 

■ that there will be no spending 
‘ binge in the last year of PresT 

■ -:** - dent Miguel de la - Madrid’s 

• administration, as there’ was 
• u H£L er its two predecessors in 

• 1976 and 1982. 

“There - have not been and 
there will not be any surprises,". 

the document says, in implicit 

v reference to President Lopez Por- 
■ - - tillos sudden nationalisation of 
the private banks In 1982, and 
President Echevarria's axpropri- 
atlon of large tracts of. prime 
farmland in 1976, only weeks 
- before they left office. . 

The presentation of next years 
budget is also intended to set an 
austere tone for the presidential 

• election campaign already begun - 
. . by Mr Carlos MIwm de Gortari, 

the young former planning min- 
ister chosen to succeed President 
*.!*• de la Madrid. 

j! l inn The government foresees 5.5 
V| i per cent growth next year,- up 
from just over I per cent this ’ 
l1\VC and the 3.8 per cent con- 

’ ’ o traction induced in 1986 by. the 
collapse in the price of oO, I 


co’s main 

Though the forecast recovery 
is modest given Mexico's record 
of average 6.6 per cent growth a 
year from 1946 to 1981; the Gov- 
ernment- underlines that the 
structure of the growth , is solid, 
based cm fiscal discipline and a 
marked strengthening in . the bal- 
ance of payments.- 

The public sector deficit is 
nonetheless forecast to grow in 
nominal terms to a record 183 
per . cent. of GDP, up from the 
expected 17.4 per cent this year. 
However, under the definition of 
the "operational deficit" - net of 
the purely Inflationary -portion 
of interest payments, exported to 
total 21A per cent of GDP -pub- 
lic sector finances will, the gov- 
ernment claims, remain in rough 
equilibrium. 

Inflation, under this, scenario, 
should come down to 95 per 
cent, against a current annu- 
alised rate of 142 jper cent, 
though this passage of the docu- 
ment is analytically weak. 

The government sees-rignifi- 
cant further increases- in savings 
(to rise 12.7 per cent in real 
terms) and in credit to the pri- 
vate sector. The government 
monopolised around: 90 per cent 
of all credit in the two yearn up 
to August this year. 

Private investment, the gov- 
ernment calculates, will buttress 
reflation, growing 143 per cent. 
The document notes that private 
sector imports of 
grew 13 per cent in 'September 
oh an annualised basis. 




Washington relieved 
at insider ruling 


FOR MUCH of his 
career, Mr Foster 


"essional 
lnans was 


just a mercenary foot soldier in 
New York's army of fi 
journalists, little biown 


of financial 
. .. , id 

the Wall Street Journal and the 

• readers of its Heaxd'on the Street 
investment column. 

But for the past year, the dia- 
* - graced former journalist has 
come to embody an important If 
abstruse, legal doctrine which 
the US Government has- used in . 
its far-reaching campaign to. 
cleanup Wall Street. 

The co n tr ov ersial J theor^‘ used’ 
to convict Mr Winans, known as 
the -"misappropriation theory,*. 

- wenton to snare- such big-quarry 
as Mr Ivan Boesky. And - when lv 
Winans appealed against his con- 
viction to the Supreme Court, 
and the court agreed to hear the’ 

" appeal, the US Government’s 

- campaign against insider trading 
faltered. Ambitious cases involv- 

... — ing three stock traders at the 

, firms of Kidder Peabody and. 
r i j f Goldman Sachs and staff at the 
'll aiL junk-bond operations. of .’Drexei 
Burnham Lambert . ' looked 
increasingly dodgy. 

Yesterday, the . US Supreme 
Court upheld the conviction "of 
Mr Winans and you could hear 
the sigh of relief all oyer govern- 
ment Washington. . “We’re 
extremely pleased," said MrGary 
Lynch, the usually coed head of 
enforcement at the Securities 
and Exchange Commission, .“Mis- 
appropriation remains alive and 
well as a legal theory," he said 
But . it may not be simple. 
While upholding the convictions; 
the court split down the middle 
over whether Mr Winans and his 
associates had broken securities 
law. Lawyers and .securities law 
experts, such as Prof Alan Brom- 
berg of Southern . Methodist Uni- 
versity in Dallas; ‘believe that 
Congressional pressure can only 
increase to force on the SEC a 
clearer definition of insider trad- 
ing 

Mr Winans, who is now 37,' 


ision 


Kidder Peabody, were convicted 
in 1985 far running a stock-trad- 
ing ring that relied on advance 
information about, the Heard on 


James Buchan on 
a key decision 
by the US 
Supreme Court 


the Street columns. Mr Winans 
was convicted of mail fraud and 
securities, fraud . and was sen- 
tenced -Co <48 months r in prieon- 
and a $5,000 fine, while the two 
other men received smaHer sen- 
tertces.A- federal ap pe als • court, 
upheld the convictions inrMsy 

The convictions were a tri- 
umph for the prosecutors, 
because they allowed the SEC 
and criminal prosecutors to 
expand the definition of insider 
trading Up to that point, most 
people convicted of insider, trad- 
ing were corporate officers using 
or passing on information about 
their companies. But if courts 
would Convict a journalist, it was 
that much easier for the US gov- 
ernment to argue that a stock 
trader or an Investment banker 
was stealing or "misappropriat- 
ing* confidential inside informa- 
tion. Without Winans, there 
might, conceivably, have been 
ho Boesky. Yesterday, the 
Supreme Court ruled unani- 
mously that Mr Winans and his 
friends were guilty of mail and 
wire fraud by. defrauding the 
Journal of its “property* 

"The object of the scheme was 
to take the Journal's confidential 
business information - the publi- 
cation schedule and contents of 
the "Heard* column - and its 
intangible nature does not make 
it any less 'property,' protected 
by the mail and wire fraud stair 
utes,’ the court ruled. 

But the court split 4-4 on the 
securities fraud convictions. 
"They got a slap in the face,* 
says Prof Bromberg. "Half the 
court says that there is ho 
ground to their screw-ball the- 
ory. The SEC and the criminal 
prosecutors will need to expand 
their indictments beyond misap- 
propriation.' 


ta& 


Car makers 
raise US 
production 

A SURGE in die annual rate of car 
assembly poshed October US indu* 
trial production up 06 per cent after 
a flat September, the Federal Re- 
serve Board said yesterday. Renter 
reports from Washington. 

New cars were at -a 

rate of 72m units a year last month, 
well up from the Bm rate in, August 
and September, as car mateni be- 
gan production of 1988 models. 

Industrial production was 51 per 
cent higher in October than a year 
ago. 


The White House welcomed foe 
figures. "This steady increase in in- 
dustrial production bodes well for. 
the underlying strength of the econ- 
omy and for future growth," said 
White House spokesman Mr Marian 
FHzwater. 

Analysts noted teat figures wore 
.largely compiled before the stock 
market crash ed October 19. They 
showed strong eronomfc . momen- 
tum before foe stock market losses, 
but did not reflect the impact of fee 
subsequent loss of consumer and 
investor wealth, analysts said. 


Peru lifts 
oil and mines 
profit rule 

By Barbara Durr in Lima 

PERU has lifted its prohibition on 
remitting profits for US companies 
involved in aO and mining. 

The decision, affecting Occidental 

Petr den m of Peru and Southern 

Peru Copper, is an atte m pt to re- 
verse dedfines in oil production, and 
aO and mining exports, Pan’s two 
most important industries. 

Mr^Cbaries Prehle, chief <rf 
Southern Peru Copper in Lima, wel- 
comed the move saying "Ilfs a very 
positive - step towards creating a 
nroch better enyirauneni. 0 

In August 1986, Peru stopped 
profit remittances and dividend 
royalties payments for all foreign 
companies for 24 months. The move 
aimed to husband tee cou ntry 's de- 
nfioihg foreign exchange reserves. 

Tie shift in policy covers only 
those companies teat have special 
with the Peruvian Gov- 
fitnmeut, tee case of Occidental and 
Southern. 

The Government said the excep- 
tion for tee two firms was :» effort 
to Momaragq investment in oQ and 
mineral exploration, which has 
significantly fallen. Oil reserves are 
down to 485m barrels from a peak j 
of 835m barrels in 1982. 


Stewart Fleming reports on a new level of intensity in the bitter political struggles on Capitol Hill 

Wright sets out to challenge the President’s agenda 


There was no mistaking the face 
that the television' cameras 
caught peering down on the 
street from the rooms of Mr Jim 
Wright, Speaker of the House of 
Representatives, last Thursday. 

it was Indeed Mr AdolIbCal- 
ero, one of the leaders of the 
Contra rebels in Nicaragua, sol- 
diers who owe nothing to Mr 
Wright but owe their very exis- 
tence to President Ronald 


day a dumbfounded Reagan 



e was no denying either 
that, in the- course of that 
remarkable day Mr Wright, the 
combative former amateur box- 
ing champion who believes that 
the Speaker’s position is the 
equal of the President’s, also 
entertained in his rooms Presi- 
dent Daniel Ortega of Nicaragua 
and Mr George Shultz, the Secre- 


tary of State. 
The 


following day Mr Wright 
was present at the meeting 
between Mr Ortega and Cardinal 
Obando y Bravo, the designated 
mediator in the Contra, war, at 
the Vatican Embassy in Wash- 
ingUm as President Ortega pres- 
ented his ceasefire proposals to 
the Catholic primate of Nicara- 
gua. 

Just who invited the Cardinal 
to Washington and presented 
President Ortega with a Wash- 
ington stage for his ceasefire ini- 
tiative at a time when the Presi- 
dent was explicitly refusing to 
deal directly with his Central 
American enemy, is unclear. But 
Mr Ortega would not have come 
without Mr Wright's encourage- 
ment. . 

No wonder then that by Satur- 


politician who has no special 
constitutional authority m the 
conduct of foreign policy.’ The 
Washington Post on Sunday 
quoted an anonymous senior 
Administration official describ- 
ing Mr Wright as participating' 
with President Ortega- in an 
"unbelievable melodrama... an 
excerise in guerrilla theatre" that 
dealt "a serious setback* to the' 
regional peace process. 

For Mr Wright's initiative ftbe- 
like of which, according to Rep 
Bob Michel, the Republican 
Minority leader, has not been 
seen in his 30 years in Washing- 
ton) represents more -than just 
another challenge to the Presi- 
dent's widely accepted primacy 
in the conduct of American for- 
eign policy. 

it marks a further diminution 
in the authority the President is 
able to wield. Now, it seems, 
even Central American govern- 
ments are bowing to Mr Wright's 
warning that they had better 
deal with him directly for he will 
be in power long after Mr 
Reagan is gone. 

It also raises again the ques- 
tion of the limits of congressio- 
nal authority In the conduct of 
American foreign policy - a 
recurrent leitmotif of the Ameri- 
can political stage. 

Congress, in particular the 
Senate, was indeed granted spe- 
cial but limited powers by the 
Constitution, including the right 
to ratify treaties which will be 



President Reagan and the 
Speaker of the House of 
Representatives Mr Jira 
Wright (left) held a stormy 
meeting at the White Honse 
yesterday over Mr Wrigbt’S 
assumed role as a mediator 
in the Central American 
peace process, writes Lionel 
Barber in Washington. 

A White Honse official 
aafd the meeting had been 
called at Mr Wright's sug- 
gestion but had failed to 
bridge differences. 

He said the President had 
voiced "Strong concern" 
about Mr Wright’s decision 
to meet President Daniel 
Ortega of Nicaragua in 
Washington last week along 
with the mediator between 
the Nicaraguan government 
and the Contras, Cardinal 
Obando y Bravo. 


used next year if Washington 
. and Moscow reach an aims con- 
trol agreement 

_ But a 1936 Supreme Court rul- 
ing enshrines toe conventional 
view Americans have of who 
runs foreign policy. It said that 
the President has a “very deli- 
cate plenary and exclusive pow- 
er.. -as the sole organ of the fed- 
eral government in the field of 
international relations.. .to speak 
or listen as the representative of 
the nation." 

How is it then that today Mr 
Reagan’s conduct of foreign pol- 
icy is under such attack? For this 
is not the first successful con- 


gressional assault on a foreign 
policy priority to which Presi- 
dent Reagan and his conserva- 
tive ideologues have an emo- 
tional attachment. 

To the dismay of conservatives 
such as departing Defence Secre- 
tary Caspar Weinberger, the 
President's top rides have con- 
ceded that the US will not press 
ahead with the Strategic Defence 
Initiative in ways which will 
undermine the crucial 1972 
Anti-Ballistic Missile Treaty, a 
concession Mr Reagan has yet to 
■approve. 

Mr Reagan’s credibility as a 
foreign policy manager, his 


imminent arms control triumph 
notwithstanding, has long been 
under attack. Tomorrow the 
Congressional Report into the 
Iran/Contra arms scandal, per- 
haps the most devastating offi- 
cial condemnation of his tenure, 
will be published. It was the 
fiasco surrounding the sale of 
arms to Iran ami the clandestine 
and illegal support for the Con- 
tras which finally undermined 
the President’s public credibility 
on foreign policy. 

But there is more to Mr 
Reagan's woes than this. The 
loss of control of the Senate in 
the 1986 midterm elections not 
only gave Senator Sam Nunn the 
chairmanship of the armed ser- 
vice committee and enhanced 
stature as an expert critic of US 
strategic policy, it laid a founda- 
tion, too, for Mr Wright, the 
newly elected Speaker, to pursue 
more effectively his ambition to 
set the agenda for the President's 
last two years in office. 

A year ago Mr Wright, to the 
horror of many in his party, pub- 
licly announced that he favoured 
a tax increase as part of a budget 
deficit reduction compromise. 
This week could see Mr Wright’s 
political foresight rewarded, for 
a tax increase is Indeed on the 
agenda for the budget summit. 

But if shifts in power on Capi- 
tol Hill, the Iran-Contra scandal 
and the approaching end of Mr 
Reagan’s second four-year term 
have contributed to his embar- 
rassments, so too has the diffi- 
culty Mr Reagan has had in 
adjusting to the need to compro- 
mise with more powerful politi- 


cal adversaries. 

Nowhere has this been more 
evident than in the revealing 
battle over the Supreme Court 
vacancy - revealing because it 
has exposed the debilitating con- 
flict between ideological conser- 
vatives and pragmatists in the 
Administration and the Republi- 
can Party. 

It is that conflict which has 
prevented Mr Reagan from 
exploiting successfully those 
opportunities he has rad since 
returning to Washington in Sep- 
tember. 

Many in Washington are 
rightly as concerned as political 
leaders in the Western alliance 
about the dangers inherent in Mr 
Reagan's weakened position and 
the risk that ideological conflict 
will weaken the President fur- 
ther. 

Mr Wright’s Central American 
initiative, marking as it does a 

new level of intensity in the par- 
tisan struggles in Washington, 
provides another cause for con- 
cern. 

It could the harbinger of even 
more bitter and paralysing politi- 
cal conflicts ahead. If so, this 
would exacerbate the anxieties 
of those in Washington already 
concerned about the damage the 
country could suffer from the 
destruction of Mr Reagan’s presi- 
dency. 

Mr Reagan’s ideological com- 
mitment helped to give his presi- 
dency its momentum when he 
took office. The danger now Is 
that it will continue to contrib- 
ute to its paralysis over the next 
14 months. 


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4 Financial Times Tuesday November 1 7 1 987 

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Financial Tunes Tuesday November 4 7 .1 987 


WORLD TRADE NEWS 


Brazil takes umbrage as US twists its arm on informatics row 


AT LAST, the phoney war la 
over. For 18 months or more, 
talks about Brazil's protected 
information technology market 
with the US have appeared to be 

UwTweSj, the confrontation 
came with the White House 
announcement that punitive tar- 
iffs wQl be' imposed on Brazilian 
imports following the co un tr y 's 
ban on Import licences for MS- 
DOS 3L3 software, sold by Micro- 
soft of the US, on the grounds 
that local producers are market- 
ing an equivalent. 

It is only the second-time that 
the US has actually wielded the 
formidable stick of its trade leg- 
islation rather than just threat- 
ened its use - Japanese micropro- 
cessors were the first victims last 
spring. 

The Brazilians can hardly have 
been surprised. Earlier m the 
week in Washington. Mr Abreu 


Sotire, the Brazilian Foreign Min- 
ister, had used the meeting of 
the 'Organisation of American 
States to appeal to Mr George 
Schultz,. US Secretary of State, to 
postpone' action' and 'await 
appeals in the Brazilian courts. 

.Mr Schultz, it is reported, 
regretfully replied that not even 
his formidable influence could 
counter the anger 'of the lobbies 

The rootranLe of^this fury lies 

in a widespread sense of treach- 
In the : US’ over Brazil’s 
failure to comply with an 
armistice. - In June, talks 
In Mexico City between Mr day- 
ton Yeutter, US Trade Represen- 
tative, and Ambassador Paulo 
Tarso Flecha de Lima, ■ had 
seemed to defuse the row. 

■ Brasilia’s claim that the sector 
qualified under the General 
Agreement :on Tariffs and Trade 
as a ‘nascent Industry' was 


reluctantly accepted by the US, 
which then won a wide range Of 
undertakings. 

These included promises' from 
the Brazilians on new . appeals 
procedures in the case of bans on 
import licences for software and 
hardware, guarantees of ‘trans- 
parency’ in legislation and the 
use of objective judgments in dis- 
putes over whether or not genu- 
ine national equivalents- the cri- 
terion for protection against 
competitive US products 
existed 

From the US viewpoint, the 
deal was just, enough, to warrant 
lifting threatened 7 retaliatory 
actum under the punitive Article 
301 of the US Trade Act. 

But in September Brasilia’s 
Special Informatics Secretariat 
(SEI), the highly-nationalistic 
agency charged with enforcing 
the trade barriers; unilaterally 
banned the Microsoft programme 


Ivo Dawnay 
reports on likely 
Brazilian reaction 
to punitive tariffs 
on its exports 

on the grounds that a local pro- 
ducer, Scopus, was marketing an 
equivalent. 

The US industry challenged 
the claim that Seobiis’s less-so- 
phisticated Sisne 3.u product is 
an equivalent. But for the US 
negotiators there is a more 
important point of principle. 

"The question or equivalency 
is a subsidiary issue for us when 
put alongside the fact that objec- 
tive criteria were not applied,” 
an US official said “SEI decided 


this unilaterally and imposed its 
decision without allowing an 
independent third party to adju- 
dicate.' 

Despite the US action, some 
days remain before the level of 
hostilities can be assessed 
After public enquiries involv- 
ing representations by US indus- 
tries damaged by Brazilian 
imports or threatened by retalia- 
tion, Washington will announce 

which products face punitive 

tariffs. The choice may be cru- 
cial to whether Brazil bows to 
the pressure. 

In the meantime, Brazil's polit- 
ical establishment appears 
divided on a response. Tne Ita- 

marati - the Brazilian Foreign 

Affairs Ministry - appears anx- 
ious to halt the trade war. This 
could just be achieved if Presi- 
dent Jose Samey can be per- 
suaded topress his cabinet to 
overturn SETs action. 


But Mr Samey is now enor- 
mously weakened by votes in 
Congress to cut his powers and 
reduce his mandate. Further- 
more, the US action has already 
provoked a new surge of atavis- 
tic nationalism among politi- 
cians, many of whom are now 
jockeying for support in a race 
for the presidency. 

The most promising political 
lever for the US must be the 
response of those Brazilian 
industries most likely to be hit 
by US tariffs. With the trade bal- 
ance heavily in Brazil's favour - 
exports of $6.2bn last year 
against Imports from the US of 
$3.2bn - the country is vulnera- 
ble to arm-twisting. 

Key targets are likely to be the 
footwear industry, which 
exported $1.03bn to the US last 
year, civil aircraft from the 
state-owned company, Embraer, 
ferro&Uicon and steel products. 


If the US chooses carefully, it 
could catch the Government in a 
formidable protest from both the 
private and public sectors. More- 
over, the protectionist strategy 
for information technology is no 
longer as popular as it was 
among Brazilian industrialists, 
many of whom have publicly 
protested against paying up to 
three times the world market 
price for goods often three years 
or more out of date. 

Logically, therefore, the case 
for the Brazilians once again 
retreating from a confrontation 
with some new compromise 
looks highly persuasive. But, 
with an all but powerless gov- 
ernment, widespread xenophobia 
and a presidential election cam- 
paign virtually under way, logic 
is not a commodity at a premium 
in Brasilia right now. 

Many believe that, rather than 

cool the row, Brazilian politi- 



SbiiltE regretful 


clans may opt to escalate the 
trade war by replying with puni- 
tive tariffs of their own. The US 
is ready for such a response. On 
Mr Yeutter’s desk, it is said, lies a 
second list of target products. 


/*»* 




■J. • t 


Credit agencies to 
review rules for 
aircraft sale finance 

BY PETER MONTAQNQN, WNjLO TRADE ECHTOR- 


LEADING export credit agencies 
are to begin a tentative review of 
International rules for financing 
sales of large aircraft at a meet- 
ing in Paris this week. 

The review follows pressure 
from airlines for the permitted 
maturity of such financing to be 
extended beyond its current 12- 
year limit. However, export 
credit officials say the renew is 
in its early stipes -and the 
announcement of changes is, at 
best, several months away.. 

The review will also cover the 
way in which interest rates are 
calculated for large aircraft 
loans. At present buyers pay a 
flat rate which includes the 
credit insurance - premium 
charged fay export credit agen- 
cies as well as a financing 
charge. 

One problem in changing these 
rules has been a differing 
approach within Europe, where 
three agencies - Britain’s Export 
Credits Guarantee Department, 
France's Coface and Hermes of 
Germany - provide loan guaran- 
tees in support of Airbus sales. 

The UK position on maturities 
Is one of qualified support, but 
France and Germany are 
thought to have reservations 
about longer-dated finance 
because of the relative lack of 
depth in their domestic capital 
markets. 

Similarly; some - agencies, 
including ECGD, axe keen to 
move away from flat-rate 
finance as this would allow" fora 
differentiated' InshraSnce pre- 


mium which could be higher in 
the buyers with a lower-grade 
credit rating. 

Others, notably Coface, are 
happy with the present flat rate 
system, since it implies a slightly 
higher level of financing subsidy 
forpoorer countries. 

. The meeting will : take place 
under the aegis of the Organisa- 
tion for Economic Cooperation 
and Development which operates 
the so-called Consensus on 
export credit rates. Other topics 
on the agenda for four days of 
talks, starting today, include a 
review of this summer's agree- 
ment on treatment of mixed 
credits which involve both aid 
.and conventional export credit 

The aim will be to endorse a 
final legal text of the agreement 
as well as to Iran out some tech- 
nical problems that remain with 
this agreement. A British pro- 
posal to end the general maytur- 
lty limit, on. export credits to 
richer countries win not be pres- 
ented as it is stfll bring discussed 
with EC partners. 

. On the agenda is the unre- 
solved issue of how to calculate 


the market-related reference 
interest rate for US dollara and 
Swiss francs. The rate is used to 
assess the implicit value of the 
aid component in mixed credits. 

The new rules set a minimum 
aid ^proportion ranging from 30 
to Su per cent for mixed credits^ 
which is designed to make them 
more expensive and discourage 
unfair competitive bidding for'f 
eontractsL * * . • i." 


TWA plans 

Berlin 

flights 

By LeafieCoBttln Beifin 

TRANS WORLD Airtines plans to 
join Pan American and British 
Airways on the lucrative routes 
between West Berlin and West 
Germany which are reserved for 
Western carriers. 

TWA said that, subject to 
approval by the three airline 
attaches in Bonn, the airline 
would begin a service next April 
between west Berlin and four 
West German cities. 

Pan Am and BA have provided 
a service between Berlin rand 
West Germany since the end of 
the Second World War. They 
divided their routes in the 197us 
to improve earnings and serve 


/A intends to begin flights 
between West Berlin and Frank- 
furt, Munich and Hamburg in 
competition with Pan Am and to 
Stuttgart which is served by Pan 
Am and BA. The airline adm itte d 
there was “no guarantee’ its 
request for all routes would be 
approved by the Allied authori- 
ties responsible far West Berlin - 
the US, UK and France. 

TWA said that, with lm pas- 
sengers annually, the Berlln- 
Frankfurt route was the largest 
“monopoly' market in the world. 
The airline entered the Berlin 
market last August with two 
daily flights between West Berlin 
and Brussels and connecting 
flights to New York: It arid it 
had already reached the 
break-even point on this route. 

Mr Harold KoseL spokesman 
for Pan Am in West. Berlin, 
would not comment directly chi 
TWA's bid but said Pan Am 
planned to expand - Pan Ain 
Express, Its new feeder service 
from West Berlin, which serves 
Innsbruck, Zurich, Basel, Stras- 
bourg, Kiel, Dortmund and 
Stockholm. 




Airline 
group eyes 
US stake 

By Ifficfcael Donne, 

Aerospace Correspondent 

GALILEO, the group of 
international airlines in 
. which British Airways Jure u 
major stake, is negotiating 
to bay a minority share- 
holding In Co via, which 
rsuas the Apollo computer 
reservation system for 
United Air Lines of the US. 
Both United and Covia are 
subsidiaries of the US AUe- 
gis Corporation! 

Galileo was set up earlier 
this year 1»y British Air- 
ways, United and other air- 
lines to link their computer 
reservations systems under 
a single umbrella software 
system to gain a bigger 
share of passenger and 
cargo traffic. 

The group, which Includes 
British Caledonian Airways, 
Austrian Airlines, Alitalia, 
Aer Lingua, KLU of Hol- 
land, TAP of Portugal and 
Swissair is talking to other 
potential members. 

- The plan to acquire the 
separate s hareholding In 
Covia, in addition to Covia 
Being an active participant 
in Galileo, was revealed in 
New York by Sir Colin Mar- 
shall, chief executive of BA, 
The Galileo group 
believes that, because 
. Covin’s Apollo is one of the 
biggest computer reserva- 
tion systems in the world. It 
ought to be the core of the 
common Galileo system. 

For that reason, the group 
believes it would be better 
for Galileo to own a share- 
holding in Covia, In addi- 
tion to Covia remaining a 
member of the Galileo 
group. 




Japan seeks to improve 
trade links with Israel 

BY ANDREW WHITLEY M JERUSALEM 

AN unprecedented visit to farad Japan, exporting goods worth 
by a top-level delegation of Jape- $322ra. ■ 

nese businessmen appears to sig- Gut and polished diam onds 
rial a desire by Tokyo to improve made up the bulk of farad’s 
low-level trade ties long wi ghma exports, followed by smal l qua n- 
by Japan's concern over the tfuM of Chemicals and machine 
Arab boycott of the Jewish state, *92*?- . = • ' 

Heeded by Mr Nihachiro Hum- The .'business leaders met 
niura, president of the Keidait- Prime Minister Yitzhak Shamir 
ren, an umbrella body for a.and.Mr SKroon Peres, the Ft*- 
number of economic organise- "dgn Minister, during a four-day 
dons, the delegation showed p vfaft: which ended on Sunday. A 
ticular interest In Israeli devaop-' - Joint 1 communique with the 
raents in military electronics and Israeli Manufacturers Association, 
biotechnology. ; highlighted Israel’s free- trade 

Last year, according to Japa-- agreements with the US and the 
nese figures, Israel showed a sur- European Community as motives 
phis ofS47m in its trade with for Japanese interest in tie-ups. 


UK may lose Turkey gas deal 


BY DAVID BARCHAAD M ANKARA 

A LAST-MINUTE price cut by Mum of Taylor Woodrow and 
I taigas for a contract to convert local Gama Endustxi at $166.1m. 
the Ankara gas network to natu- Both British bidders are under- 
rai gas is threatening to rob the stood to have had the benefit of 
UK of Its first major civilian coon-' a substantial soft loan from the 
tract in Turkey for many years. UK Government, pledged to the 
Three Udders have bean com- Ankara Gas and Electricity 
peting for the contract to con- Authority, EGO, fast week, 
vert the Turkish capital’s gas However, on Wednesday ItaJ- 
system to Soviet natural gas and gas, the third bidder, announced 
until fast week the front-runner that it had cut its bid to Sl26m, 
appeared to be a consortium of making ft the lowest of the 
Amec of the UK and local Kutiu- three. Its earlier price is believed 
tas with a bid of $127m. to have been substantially 

The second lowest price also higher, 
came from a British-led censor - - EGO has invited all three bid- 


ders back for a further round of 
talks tomorrow, which is likely 
to be decisive. 

• Turkey hopes to sign a con- 
tract this week with an Austra- 
lian-led consortium to build a 
$1.4bn coal-fired thermal power 
station on the Mediterranean 
coast, energy industry sources 
said. Renter reports from 
Ankara. 

The group, led by Seapac Con- 
trol Services Pty, was chosen on 
September 17 to build the power 
station. 


BT wins Saudi telex order 


BY DAVID THOMAS 

BRITISH 'TELECOM has won its 
biggest overseas contract by 
clinching a three-year deal to 
run Saudi Arabia's telex net- 
work. 

The contract, worth Riyals 
161m (t4&5ra) has been awarded 
to a joint venture between BT 
and the Jeddah-based Haji 
Abdullah Alireza ft Company. 
BT holds 49 per cent of the joint 
venture, with the Saudi com- 
pany awning the rest. 

It represents an important 
breakthrough' for BT which has 
been keen to build up its over- 


seas business following its priva- 
tisation. 

The deal, details of which are 
riven in- this week's Middle East 
Economic Digest Magazine Js to 
manage, operate and maintain 
the country's telex, teletex and 
data network which is under- 
stood to link about 300 towns 
and villages. It also covers the 
maintenance of Saudi's telegraph 
network. 

BT will help train Saudi per- 
sonnel in the running of the net- 
work as'part of the contract 
which comes into operation in 
January 1988. 


• Hopes have risen of a 
breakthrough by Plessey, a UK 
electronics group, into the tele- 
communications equipment mar- 
ket of the Eastern bloc as a 
result of a visit of a high-ranking 
Soviet trade delegation to Ples- 
sey ’s Edge Lane factory yester- 
day. 

The Soviet delegation, led by 
Mr B.L. Tolstykh, chairman of 
the state committee for science 
and technology, is understood to 
be particularly interested in Ples- 
sey s System X digital telephone 
exchange, its payphones and its 
microelectronics. 


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Financial Times Tuesday November 1? 1987 


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Pf lKt TVS, many of 
our children’s programmes 
are now in their second, 
third, fourth and fifth series* 


This success comes from a 


real understanding of 
children. (The most critical 
audience of all.) 


Five years ago, we re-styled 
the familiar magazine 
programme as a comedy soap 


opera. 


Now, with a roller skating 
presenter. No. 73 keeps on 
running. 


For Telebngs, we drew new 
standards in British anima- 
tion. Our young audience, 
raised on foreign cartoons, 
appreciate the difference. 


TVS is also a major contri- 
butor to children’s drama. 
We hose out new writers like 
bloodhounds. 


Mr Majeikaby Emmy award 
winning authoress, Jenny 
McDade, is one such 
experiment. Stanley Baxter 
plays a wizard banished to 
teach in a village school. 


Also next spring, another 
household name, John Hurt, 
will be recreating the time- 
less charm of .European fables 
in The Storyteller. 


Certainly, the variety and 
impact-of our children’s TV 
shows we’re really on their 

wavelength. 






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Financial Times Tuesday November 17 1987 


Arab stock mark 
calls for regional 


BY TONY WALKER M CAIRO. 

THE head of the Azab world’s 
most developed stock market has 
called for the establishment of a 
regional bourse to encourage 
imer-Arab trading insecurities. _ 
Mr Hishaxn ai-Otebf, director of 
Kuwait's stock market and chair- 
man of the Union of Arab Stock 
Exchanges (UASE), told a semi- 
nar In Cairo yesterday that the 
central banka .of Arab - countries; 
should contribute towards set- 
ting up a joint exchange. - 
Mr Otebl's call comes. at a tune 
when many Arab Investors have 
had their fingers burned oh 
world markets. This has 

S rompted some to look for 
ivestment possibilities closer to 
home. 

"What happened in world 
stock markets was not a 
crash.. ..it corrected wrong posi- 
tions as the former rise in prices 
was not normal,* Mr Otebi was 


quoted as saying by Egypt* Mid- 
dle East News Agency. . 

His call for the establishment 
of a regional market follows a 
plea by Mr .Yousri Mugtapha, 
.Egypt’s Economy Min ister, for 
increased IntoArab investment. 

Mr Miwtapha said ilSbn was 
needed from the private sector to 
help fund Egypt's development 
programme- in its.- current 
1987-1992^ five-year plan. "This 
makes it necessary," ne told the 
seminar,. "to exert- more efforts 
to attract funds into -the Egyp- 
tian market.*' 

Mr Otebi called on Arab coun- 
tries to ease rettfetions on mar- 
ket dealings as a step towards 
creating a. joint -exchange. Arab 
stock markets are, by -and large, 
still in their infancy or, as In the 
case of Egypt, virtually mori- 
bund. 

Confidence in regional stock 
exchanges was rocked by the 


OVERSEAS NEWS 

it chief ‘Assault on 

press’ 

bourse storm in 

New Delhi 


New Guinea hit by 
political scandals 


New^xkgNsyoa 


BY JOHN MURRAY BROWN M JAKARTA 


1982 crash of Kuwait's Souk al- 
Manakh unofficial market which I 
wiped $90bn off share values In i 
several days, leaving Kuwaiti ! 
. banks with debts of Slfitm. 

The - three-day Cairo seminar ] 
was attended by the seven UASE j 
members - Egypt, Jordan, . 
Kuwait, Lebanon, Morocco, ] 
Sudan and Tunisia- ' 

.•Beater reports from Bah- 
rain: Bahrain has restored full' 
diplomatic ties with Egypt, join- 1 
ing five other Arab states which ; 
have done so since the Arab | 
summit in Amman last week. 

A foreign ministry statement 

yesterday said Bahrain had j 
taken the step to promote Arab 
unity. 

Kuwait, Morocco, Iraq, the : 
United Arab Emirates and North 
Yemen have also restored Units 
with Cairo, broken whan Egypt 
signed a peace treaty with Israel 
in 1974. 


Israel fights for US to put up 
bigger share of missile cost 


BY ANDREW WHITLEY Jtt JERUSALEM 


ISRAEL is fighting hard to per- 
suade the US to put up a larger 
share of development funds for a 
new anti-tactical ballistic missile 
to be jointly developed by the 
two countries. But US budget 
cuts being prepared could kill 
the project altogether. 

Nominally part of the US Stra- 
tegic Defence Initiative pro- 
gramme, the proposed weapon. - 
codenamed Arrow Project - is 
urgently needed by Israel to 
counter Soviet-made SS-21 mis- 
siles recently delivered to Syria. 

Mr Frank Carlucd, US Defence 
Secretary -designate, told Senate 
confirmation hearings in Wash- 
ington on Friday that the Israeli 
Government was unhappy with 
the recent cost-sharing proposal. 
The Pentagon is suggesting that 
part of the estimated S4ft)m 
development cost come out of 
the SLSbn US military grant to 
Israel. 


Earlier, Mr Yitzhak Rabin, 
Israel's Defence Minister, had 
apparently rejected out of hand 
tine US proposal that the cost of 
the short-range missiles develop- 
ment be equally split. . 

The Ministry has made no 
secret of Its wish to see the US 
covering-90, per cent of the costs 
on ' a project which, some Israeli 
military experts fear could prove 
a heavy burden on the country's 
already overstrained resources. 

. Potential losses could far 
exceed those incurred on the 
recently cancelled L&vi combat 
aircraft, the daily Ba'aretz 


The Arrow Project is expected 
to be one of the items raised by 
Mr Yitzhak Shamir, the Prime 
Minister, in Washington over the 
next week, during talks he is due 
to have with President Ronald 
Reagan and Mr George Shultz, 
US Secretary of State. < 


Mr Shamir's visit, which 
begins tomorrow, coincides with 
the annual meetings In the US of 
senior Israeli and US officials on 
strategic co-operation. 

During an appearance before 
the Senate Armed Forces Com- 
mittee, Mr Carhicci is reported to 
have said he was 'sympathetic* 
to ‘Israeli participation, and still 
hoped this would be possible 
despite the negative reaction 
from Tel Aviv. 

■ He revealed that under Wash- 
ington's latest proposal, 60 per 
cent of development costs would 
come from the Pentagon and 40 
per cent from Foreign Military 
.Sales (FMS) aid, leaving 10 per 
cent to be funded by the Israeli 
Treasury. 

"Apparently they still find 
that too burdensome because 
they have other needs for their 
FMS money", Mr Carlucd told 
the Senate. 


Riots close Nairobi university 

BY ANDREW BUCKOKE M NAIROBI 

NAIROBI’S university- was dosed Small groups of students were from -the residence halls, and 
by the authorities yesterday and hustled from the buildings and thousands were seen running to 
the student union banned after a beaten with batons. Riot police the buildings and returning with 


the student union banned after a beaten with batons. Riot police the buildings and returning with 

second day of violence at the chased foreign correspondents, suitcases and bundles. The stu- 

dty centre campus. four of whom had been badly dents seemed glad of a truce as 

. beaten on Sunday, from the the riot police established con- 
Y tiling riot police with batons scene. trot 

and shields systematically The situatian remained tense It has also been announced 

cleared dormitory buildings,- and yesterday* with groups of sto- that the Nairobi University Stu- 
studenia responded wjtft- Bottles- -dents wandering" around parts of 'dents' Organisation has been 
and stones. ' the dty centre near the campus, banned. Demonstrations by radi- 


YeUing riot police with batons 
and shields systematically 
cleared dormitory buildings,- and 
students responded wjth'frottles 
and stones. 


- - • wpmp wmyjng-gtgnqg, until It y cal students, aggrieved by the 

The disturbance^, !8Ag W^QX*. .was announced at 2psft'thaS ; tne -country's patriarchal politics and 
Sunday when several hundred university was closed indefi- the wealth of its elite, have 
students protested over (he nitely. resulted in university's closure 

arrest of seven newly-elected - The students were given until several times in the last five- 
student union leaden. 4om to dear their belongings years. 


4pm to dear their belongings years. 



M4 

T 


f rr 


out about 


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has over 100 industrial ’ estates' and a wide choice 
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Fbur, by sending: off this coupon. Well be in touch 
with you by return of post. . : 1 

All these connections are fast, but if they’re 
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By John EBott in New D«M 

THE Indian- Government - was 
accused in Parliament yesterday 
of an “assault on the freedom of 
the press* because it has. started 
legal action to take over the New 
Delhi headquarters of the Indian 
Express, the country's largest 
circulation newspaper. 

The Govermnerit claims -the 
action has been taken because 
the Indian Express breached 
land development regulations 

eight years ago and has not 
accepted court attempts to 
resolve the issue. 

A political storm broke put In 
Parliament yesterday because 
the Indian Express haa been 
spearheading an attack on the 
government of Mr Rajiv Gandhi 
during the past year, and has 
been making- allegations over a 
S1.4bn government gun contract. 


Delhi edition of the paper has 
been shut by a strike which Mr 
Arun Shourie, the editor, and 
opposition politicians claim has 
been organised by Mr Gandhi's 
Congress 1 party to take the 
paper off the streets. 

Early in September, . revenue 
officials raided the neswpaper’s 
offices around the country, alleg- 
ing large-scale Infringement of 
import duty and corporation tax. 
But critics assumed that the offi- 
cials were looking for documents 
which could be damaging to. the 
government. 

The accusation over the Indian . 
Express building in Bahadur 
Shah Zafar Marg, a newspaper 
and commercial centre on the 
borders of New and Old Delhi, is 
that the owners are using land 
and buildings for purposes other 
than those originally sanctioned 
when the land was leased to 
them in 1968 by the government. 

Court proceedings have been 
in progress since 1985. 


THE MELANESIAN island', of 
New Guinea' • divided into the 
Indonesian province of Irian 
Jaya and independent Panda 
New Guinea - is currently reeling 
from the shock of two separate 
but related political scandals. 1 

This week's revelations by Mr 
Ted Dtro, a former commander 
of the PNG Defence Force, that 
he received campaign funds of 
*139,500 (£78,000) from General 
Benny Murdani, Indonesia's 
armed forces chief,' has caused a 
sensation in Port Moresby, the 
PNG capital 

Mr Duo faces charges of cor- 
ruption and perjury. Gen Mur- 
dani has - denied the allegations 
against him. 

Meanwhile, In. Irian Jaya, the 
Indonesian half of the island, 
controversy surrounds the sur- 
prise resignation of Mr Isaac Hin- 
dom, the native Melanesian gov- 
ernor. 

Among other things, he is said 
to have a second wife, which is 
forbidden for -serving govern- 
ment officials. In Jakarta the 
story has attracted scurrilous 
press comment hard to imagine 
in a case affecting a Javanese. 
On both counts the Indonesian 
Government is suspected and 
has been accused by some of 
high-handed interference. 

Irian ese reportedly threatened 
to hold a protest march in the 
provincial capital of Jayapura - a 
rare event in Indonesia. In PNG, 
opposition politicians have 
rounded on their Government 
labelling it a "puppet” regime of 
Indonesia. 

Indonesia has been trying to 
improve relations with Melane- 
sian neighbours throughout the 
region to deflect criticism of its 
policies in Irian Jaya and in a 
bid - to gain a foothold In the 
south Pacific. The first signs of 
this were last year when Indone- 
sia supported an Australian- 
backed motion at the United 
Nations calling for the indepen- 
dence of New Caledonia, the 
French-ruled Pacific island. 


In the last two months the 
Government has been almost 
alone in offering assistance to 
the newly-formed republic in 
Fiji, without formally recognis- 
ing the regime, The latest allega- 
tions concerning Gen Murdani, 
whether intended or not, seem 
likely to cause particular damage 
to bilateral relations with PNG 
at a sensitive moment, as both 
sides sit in Port Moresby to- 
review the joint border agree- 
ment 

■ That accord, which was first 
signed in PNG last year, was rat- 
ified in March in Jakarta, with 
Mr Diro then deputising for the 
PNG Foreign Minister, and has 
greatly reduced tension on the 

500-mile border. 

In 1984 a heavy-handed riposte 
by. Indonesian security against 
local separatists, prompted many 
thousands to flee the border into 
PNG. Around 10, (XX) Irian ese ref- 
ugees, some of them civil ser- 
vants and teachers, remain in 
nine camps administered by the 
UN. Local concern has focused 
more recently on the Govern- 
ment’s transmigration pro- 
gramme, which originally aimed 
to move about 700,000 landless 
peasants from other Islands to 


r &fu~ > 

fs, >&* * m m , : # 




€ ■ 


Violent opposition to the plan 
among the island's L3m inhabit- 
ants 3 sporadic and the migra- 
tion targets have been drastically 
scaled rack because of a shortage 
of funds and the logistical prob- 
lems of running a project that is 
as far from Jakarta as Jakarta is 
from Perth or Hong Kong. 

Mr Watanabe 

A photograph accompanying an 
article on Japan's new cabinet in 
most editions of the Financial 
Times of Saturday, November 7, 
was incorrectly identified as that 
of Mr Mlchio Watanabe, the new 
-chairman of the ruling Liberal 
Democratic Party's policy affairs 
research council, we apologise 
for the error. 




^tJUsteeSteraton v - 

The qualuv of its guests w tfw .-ii^uiture oj a great hotel 
Fifth Avenue if 55th Street, New York. The hospitality people of ITT 
Toll-free: in UK 0^0-353535, in W. Germany 01^0-353?. 

In New York 5 2 2 2 1 '55-4500. Telex USSR's. 


ADVERTISEMENT 


FOCUS ON SOUTHERN AFRICA 


Economic interdependence 
is key to future 
of Southern Africa 


At Otis final interview of the series; P&Bo0trt,Minister of Foreign 
Affairs, talks to John Spira, Finance Editor of the Johannesburg 
Sunday Star about economic interdependence in Southern Africa 
and related matters. 


BT ^"m 

^■1 



Spira Whfafo jour ana* view on thesandfaof raid 
dNnabMt bm? 

Battue The ingwsilion of noetkm against South Africa 
va»anbistDricaientirl*sedpna Dumber of miscencqh 
boos and ignorance of the realities in Southern Africa. 
The niWlnpadmmiscoaceptiQn las bees thvibe Sash 
African government coaid be coerced bus acceptance of 
dctnuxfe made from abroad in respect of a wide range 
of subjects — from what the outride will penciled to 
teiteidedp(dhktisolaianioitedoiiaii^ifaiwv 
hdd. ratM d ter h nu a ti ciiateterrimserfsp-caflBdpo- 
Etical prisoners. TIm* who tare adwcsiedsmctians have 
been ignora* of the realities of dreafo-coaiiienL 

1 cannot comprehend ihe way In which governments 
— pnttienkrty in the western world — which Should fare 
access to theuhimae is faieIGgence, ; aiE able a project 
auction as being of nuance to aqr of our neighbour- 
ing mbs. It it *rady not bqond the capacity of these 
gpwrmneas to ascertain die tine economic stations ia 
cooctries bfa Me na m bi ^ i r , Zimbriwc. Swagand, Bot- 
swua. Zambia. Lesotho. Angola and Malawi and risen 
to discorer Jus bow interdependent ore iH ins. - 

Each and every one of time countries arc aSast on 
South Africi (to igreaier or iesser degree) for thejrcotD- 
i wm ic wlnr^ ttMnpriin fc atr u ca^ 
buestmenB ty Soab Afikan m doe monies ran to 
biHio«. 

Furfm; Sowh A6ica proviiiec jot* far ncariy 2 mD- 
lionUadr people fiwnaorneigidNais and the fnntfinc 
states aodcowaries (onberafidd. Some aw iegifly here 
bwibemqcHiiyliiMecniBiedatirboideisaadaicwodc- 
ing here goes wtaxa ^ingibartey take jota 

kmqf ftom bhdk Sanh AErkaas. noce mny of themaie 
wflfiagio work far hiw wages and, in some cases, merely 
n rensm far food. 

BeaffamiteBa many (Jifacforeigaec w orking here 
seadpmofifagrearpdngt back bo rne , implying thttodl 
in esceti of2 milfioo tadgn Hacks dqjend sddyon tear 
Sooth African sttoced income. . 

- MygpwHBmraakB4edio8oac«fldly it«^ Bd 
finod daaanddcady examioesdieoomeqKnxsafiiiy 
aetkn famtebnate & puziteiiieitagoieimieaBwbidi 
mppan smctkiBs M to apaat bi the same vsy. 

SfkK WMhhrt you concede that the America*, 
wbosesaaetkos' UMhc haabeee out tnnaM to 
SoWh Africa, adopt deddcn-«aUa*anifsJescfdie 
kind joo tec just oodhed? . 

Bo tha; Oa e hannendynnagniBefre debate leading up 
to the US andhns vote <b Sonata Africa to appieciaie 
die total absence ofobjectiviry: No BtEapt was made to 
address die oonre<|ueiices of *— **■«« for Sooth 

AfiieaiB, fcr owndetbooring met fcrempiojinieaasd 

for the «lvia»neMofcHrbbick people. The whofc de- 
bate nos cotKkded on an emotional plane without ary 
refeutt to the tree coodkiofg is Ais country. 

What I fiad wxiyiag vdoi if akgjdaBK as powsibl 
asdiBrfibeUi^SBig,teCTcaftirinsbiwciMcraa- 

tiooai nmifiraiOBg, cm pudi Aftogh l^isteion based 
ooemodanadientn oDobjecmcaama, itaitkiworid 
bees po tetiri hazards of frightening tfimoisfoos. 

Ignore SooA Afrieu issue aadssk yonodfbon 

against be background I hne dscidbed, j«« w«ld vkw 
& taknie behind UmKd Senes aaioo m (be Midis 

EtettePenjMGolL&iCtBffld America, m the Ph4ip- 
pines aod in the ipbere cf the Third W akl ddx crisis. 
Ybo void atre^r beoonoeraaidBt a ptMf Bib the US 
is ncapAlcafbarBeBinBaBd radimen- 

utyiod(riik«»1ii^ac^oonjJnkmNbnnHnUves. 

REdffBBgi to the Soaoh AfisB coME&.k is ckar dial 
BDoogwrae <m teraofte fretto sanakm«« 

gob^tohinntiiCi*btes}b<ocitmert.hdpdK(atre^ 
rfeht and kfrwtng efotnaift. and reanl brtw refc*™. 


process and have IbreigB perceptions trf reform 

aRocd? 

Bate: Saaakxs assbt die radical kfi aad die ufical 
righLTheaificaildtseesaiciioosassupponfiirdKff 
poticy of viotence.^ The redkal righ claim dm no maner 
J»w much icfctm is inooduced. the ^tstem wdd wffl 
m be saulicd od dus couraiy b desmyed. One must 
appredaretbait m^or reforms ina South Afnam ooetext 
are often viewed as m i nor itio n na by tboic faring abroad 
— even tough noil recently some sates io die US had 
bn against marriages. 

What maty foragnets do not appreciae is the ooreoe 
r^H-wmgoppo si liotiwifcwhidinygygnroeg is faced 
cneach occasioo dm adt&iaoal reforms are effected — 
reforms soch as tbe so^ipaigof legisfarioo oo miwd- 
mamagesbtadcArtarcohabiJmotuD^airard(et>- 
railhig the repeal of 34 prodaniBlkiti5) and the inirodno- 
don of a single identity document for South Affiant of 
til races 

h goes fimher- Wb hwe vwtfadtaam while ptc fe reaoe 
in our immigratioB Iwt All spots has been oonpldeiy 
desegregnlod. Wfve tel a firm goal of parity in edneafoa 
— even :^i it wffl rosi the eoumry biBions And. for 
the fast line is Saudi Africa's 335 jear Wnoiy. dace ha 
July we've had muted executive government ia the 
fawinces. in the prwia- 

citi comcfls wbkh Brioin jKfovided for in KHOl 

During the recent udoeMirfcea! srfle, we remavedthe 
last vestige of job resefwtion — m die bee of were op- 
position from the powerful withe mine withere' muon, 
fa thepast. blades were precluded from ceraa jobs. No 


Kite tarns from ibe co ufa encc table modauc Midi 
leaden. 

SpbttHmtaMkKiii fKtnanWfberefira 


Then foere are jmpOftaaainitiu n ce raCTls like the Ka- 
donalCbuDtil.iidiei^fordKfiitidnestatunypim- 
aoniaoiadefiirbiackSoaihAincaiBtoaerveouaua- 
dooar tnmtiuiknti body and to help shape poficy. Abo, 
m terms of the Rc^aoal Services' Cocntd we wiB new 
base joia respoo^tflity tithe regioral letd. in wbkb 
blade and white representatives wffl senctogediec bfih 
miei town planets wB be able n deudop new opea ur- 
bauareas 

Spin: Wby do the freotise stabs, obviously aware 
•ftbedHmgethatwoaldbeUficledoatlirirecosio- 
mies bf smokos aa Sooth Africa, cooafaK is sup- 
port stub sanctions! 

BoduuTbeydasoinfoebeiiefifatidiehBmdKysufier 
wotdd be made {pod by die twsrem wodd. I am convinced 
dial tbewest will not offer them compensarioo. In effect, 
tysappottiagaadkiraacaunooiiiuriesghttriKtoes- 
peemfoes wtikb will not be fulfiBaL 
b the end. die whole sub-cattiaeni wifi pqr foe price 
for ananas on South Afrin. 

Sphui lb wbti etfal do jow estpect sa ndfai to 

damage the Soolfa African ecoaooiy? 

Botha: Tky wffl na desrey os. Bta, tor is no doubt 
that day wiH catse a lot of ham to minion of Africans 
iotteSotrimAlntraregraltegan^ 
the soberiqg«p procea merftiiKS. foednngedatwifl 
hive been done wiB take ioqger to repak 
Ben vnderconfiims cf peace wJtoHiiy at Sottitem 
Africa, the region faces aotatbiotts snuggle to get is coon- 
ooues offthegmtiHL k is geuoafiy accepted tbit Africa 
is tiyiog - poUticafiy. economically and socially. Thus, 
orekrtrititecoodiliotuNpeic&ifAfrkantiSLtnad- 
dkfaiai. be baldened by suctions and boycotts, then d* 
cotiiBefll has on hope for the future. Howeaer, lire coun- 
tries south of Ac Limpopo ase better equipped to with- 
saod sskdous. 

h k tbc catatrics and people widt the lean captd x 
(bear disposal aad wkfa foe least resources an! Kdmo- 

logp^deuelopnie^ 

jqfetotfarahi^mcnryatdia for black Soah 
Africajc among the advocares of sannions- 

Spin:lteefiDnftide,GaijnidenfriyaByadKrnoii- 
ntteslbr Bupcsfagsanctioos on Sooth Africa? 


PK BOTHA 

Botbsc lbu need look no further dem AustrafiaandCaMh 
da — the sanction^ aacbbearers TTay produce much the 
sune capon pmduos (minertis meals and agricultural 
pnxlocti) as Sou* Africa. They hoped rhai by poshing 
Somb Africa ou of (here maites. they would benefit, 
fa fact. Ibis hasn’t happened. 

An canqde. When sauoiaos were teamed, a cei^ 
tain counoy came to us witb a imprest that we towr (be 
price ofac an modiy we nwftiontilysoMp it ^fe agreed 
to the request. That canny then wen n Australia with 
the request thot it be* the new price. Australia couldn’t 
Nor couMnifo soon otber commodities widnut harm- 
ing us own econonv. 

Clearly, oommis Be Aostrafiawahve to rahfok their 
strategies, because if [bis is the way drags are dctciop- 
ing. bf supporting sanctions thqr are pricing dmsetm 
out of the vwrid marisets. 

Spins Do you detect n softening of the stance on 

Botha: I don’t Eke » indulge m wish&d dmdcnigba there 
are reasons for befievmg that ti teast in some quarren in 
Europe — Britain, Gennaiy and France — people in top 
positions are rethinking die eflucy and wisdom of 
suctions. 

Spiro: Do job wdcorae hfrs Tbatcbcrb stand ngtiodt 
anctioiti! 

Botha: MaThatdwbas taken a strong sand dot has 
cenaipiy impre sse d the vaa majority of Sodh Africans 
- both Uxfc sod white. Sh£s adopted a bold ud dirca 
attitude abb ob the terrorist methods of the ANC 

Spiras What has been the stnmbfeg bfack to more 
meanfagfitd dbtogoe wM nadertie blade Seodi Afri- 
can leaders? 

Botha: bYdifiicah for them to come » die fore too opody 

and negotiate with us. bocanse that is seen as a sign of 
weakness oo their pan. One of die problems is dial the 
ANC (Kb has publicly declared) does oat war! to dare 
poncr but to seize power. This son of policy and tbe tac- 
tics used to adrieue its aims tend, not surprisingly to in- 
timidate moderate blacks. 

Wfc shafl nevertheless push ahead with the process of 
reform. I belie* ths wtii the possap of time, biacfcSoudi 
Africans will appr e ci ate that saactioas and external sap- 
port for tbe ANC win hwe resuted in job lasses that their 

safaries wiU not be rising as rapkBy as they should: and 
that iaprowancrminetfo catinn wiDbe b aro peredihere- 
by. When that happens, we sboold note greater strides 
umaids more meaningftil dialogoe. 

In die meantime, we"B hne to sweat it oul Vlfc simply 

cannet, tiite drop ofahti, capitulaie» the demands be- 
ing made upon us ty those who ioie no inffiresi in the 

fame welfare of die country — demands which would 
nib the whiles of any sqy in tbegpvanmem and [offer ;no 
protection id bdan. coloured and even, black minorities, 
fa any event, ooc-man-oae^ote ha mutsay ^swn is 

tw tte only wy of gowniipg democratically. There are 
other Meats Npviogpropa ttoiiocraicrigc to tilour 
commuiwries — systems whereby decisions are taken 


dependsauthepoiiikadwillpowa-ofthentens'sfcad- 
eis ani accepooce of the ratines of our dhrashy 

Spira: What kite badamemtiefomeixm the Smdh 
ATripa govermaaU’s poitfcti objretivesT 
Bodaslhititapatiaawidiradoamnuoa— partidpukn 
in dre wealth of ite counoy and io the derision-making 
process And « haw tiready deelanri thti we are, in prin- 
ciple, natty to oegothie a new Sootii African oanstiin- 
lion bead on power sharing in respecs of aD rowers of 
national concera. 

hwtxrid be coconogiiig if western govaninefflssup- 
poned dus otgective and adaowfodgn the m^m-icfonns 
dm hare taken place m South Africa. I cannot undetsnnd 
why. dds cannot be done. 

Stuxhnis and norms are expected of ns which ate ex- 
pected of oo other Afticancoiuijy. It's a foim of rewse 
radsra. In the rest of Africa, cups, a government- 
oontroBed press, tficwonfagis and nuanalised busmen 
secans ffi imquesponed. Not in South Africa, winch, 
foretgnea U ro realise, is not n European coontry. W; 
cenainiy wish fo uphold as oaoy of the foudameratiEa- 
fopeu r%fais and sandaids as possfoie but this is ninply 
nxa Europeu counoy. What makes owdnosiiy more 
comptet is the famhat we have a> deal with a fesi wnrid 
economy and a third twrid economy 

Bui die tefaiive freedoms and dembenoes that do e*- 
tst in 5ondi Africa are being criticised ly thare wishing 
to destroy them and replace them witbadkonsfaip which 
would dimmiBK human rights. 

This §3venBKia can change and s is dunging. But we 
camwtsxxuinbro demands wtuthwouIdinevioMydes- 
iray democracy and prove emprise. 
SpwSoulhAfricalsstilbeingacaHed—paitkii- 
hBfyby Miuimh i q i if — ofheingadestaM M ngfliiee 
in the Soatheni Afriom regfon. How do you aremer 
these accusations? 

Botha: Mazambiquc. we til know, is in a bad way eco- 
oomicaBy and the shmtfon there is oontinuing n tfctai- 
anne. South Africa's hneresa are not served by inch a 
situation, which is why we assisi Mozambique in many 
wgqfs- In additioii. we're atihdylookipgtiMys and mu’ 
ms of seeming the Cahora Bassa lqdi»dcaric pngecL 
been aoaaed of assisi* the revdutioiBry Bena- 
mo forces m Mtyamhiqnr No one asks whether feno- 
mo is reccfvtng tid from Musfim countries or 6om i»- 
dividuab in Europeu comlxics. Most importantly, how 
could the «ast amount of foods required to support the 
Rtaamo Ibices be concealed in the South Afrie u de fen ce 
bodgd?l know wfati it costs to keep the Ctfoans in Anpi- 
la. Halve that cost in the cmc of Renatno and hwwdd 

■tiH be impossible for Sooth Africa to hide » wst a sent 


dm that their rights are preserved. The end result 


Vfe are stiD being accused of haring engineered the 
Machd air disasrer— even though an impaititi tribunal 
found that theaeddent was. without a shadow of a dtnfaf, 
the cause of p3a inefficiency. 

It isn't easy bo deal with a government winch behaves 
fa das way Vk nevertheless condone to pnwide wsiasiice 
p Mogaaibique— as ucdoa other n rightwu rieg stares. 
Emmplesaie die Lesotho Highlands water prqjea. and 
the soda-arii undenafcng fa Botswana. 

WhoesthesaiseinagreeiogrobeipfiiancesiiditTBm- 

nwtb projects and dien anempong a desabffire die cam- 
tries fa questiori? 

Spira Do jButrgiPriecog u iuic re fo rm as going h ai d- 

iwhaad wMt ptiMrti reform? 

Botfam 1 do. Unless theerasomy remain somd and sta- 
ble. politics will be secondary Wre well aware of dtis 
and hwe ktog ago embarked oo a pofey of economic as 
wefl as political reform. 

Vfcvc provided incentives a create fadustries in de- 
certraliscd areas with a view a achieving enhanced job 
creation; wevecieaeedthe Dewfopnett Bank ofSoodieni 
Africa and the Small Business Daefopmen Qaporatioa; 
more than htif a mfllioo sands tew been made availaUe 
a Hacks for purchase at prices as tow is 200 pounds; 
we’ve deregnlarised the marketing of food a assist blade 
bratnessmen and fanner*; we re busy reforming the tax 
•gSKfflixnd we're eucotuaging and tramngbfack fom- 
ers. who haw proved that thaty can produce on a par widr 
wh* burners, 

[magine bow much more we could do wMkhi the bur- 
deaofsgtttio«aifoiic r oo ritJiiiB«i o n rfdgiaenanoPil 
community! Ai a tiroe in oor Itisary whea we oogbt a 
be enconraged we are punished. I wiil never undmond 
this. 







Financial Times Tuesday November 17 1987 


OVERSEAS NEWS 


HK poll protest 
to spread to 
London, Peking 

By Robin Pftotojr. Alin EdBor, In Hoag Kong 


HONG KONG legislators 

for the speedy Introduction _ 
direct elections to the colony's 
Legislative Council wjQl spread 
their campaign to London and 
Peking next month. 

The decision to lobby the Brit- 
ish and Chinese Governments Is 
part of a strategy which has 
force since the Hong 
Government published the 
ts of two surveys of public 
reaction to a green paper on 
options for political reform prior 
to the return of the colony to 
Chinese control in 1997. A white 
paper containing the Govern- 
ment's chosen formula for 
reform is. due in January. 

The Survey Office reported 
that, although many people were 
In favour of direct elections, 
eventually only a minority 
thought they should be intro- 
duced as soon as next year. But 
these results and the survey 
methodology have aroused great 
controversy, the Hong Kong Sta- 
tistical Society being the latest to 
the surveys were fimdamen- 
flawed. 

roorters of full direct elec- 
tions in 1968 marched through 
the centre of Hong Kong to the 
Government Secretariat at the 
weekend. A petition was handed 
in, demanding that Sir David 
Wilson, the Governor, answer 
their charges of manipulation 
and distortion of public opinion. 

The activists have now decided 
to raise the level of the campaign 
by sending two members of trie 
Legislative Council, Mr Martin 
Lee and Dr Conrad Lam, to Lon- 
don on December 12 when they 
hope to put their case to Mrs 
Margaret Thatcher, the Prime 
Minister, Sir Geoffrey Howe, the 
Foreign Secretary, and members 
of the House of Commons. 

On the same date two other 
members, Mr Desmond Lee and 
Mr Szeto Wah will go to Peking 
where a plenary session of the 
Basic Law Drafting Committee 


will be in session. This commit 
tee is drawing up proposals for 
the administration of Hong Kong 
after 1997, the Chinese having 
accepted a one-natlon-two- 
avsteras formula under which 
Hong Kong's basic structures will 
be guaranteed for 50 years. 

On December 6 a mass rally 
win be staged in Hong Kong in 



Committee for the Promotion of 
Democratic Government, the 

umbrella organisation for more 
than 100 press u re groups which 
have sprung up to press for 
direct elections next year. 

The problem for the British 
Government is that, although it 
would prefer a fully democratic 
electoral system to be in place by 
1997, it does not wish to anta- 
gonise Peking. Deng Xiaoping, 
the paramount Chinese leader, 
has already said that Western- 
style elections would be unsuit- 
able for Hong Kong as they 
would "not necessarily produce 
the correct leaders.” 

Chinese members of the Basic 
Law Drafting Committee have 
said that Britain failed to intro- 
duce fun direct elections during 
its 140 years in the colony aim 
should not rush such a system in 
before the committee has fin- 
ished its work. 

This has prompted the charge 
by the groups urging elections as 
soon as possible that 


— ^ — «- 1 sensfhflities 

to Peking have made the Hong 
Kong Government a lame duck 
An uncharacteristically pro- 
vocative response by Mr David 
Ford, the Chief Secretary, in 

which he said * ’ “ ■ 

themselves pi. ^ 

rather than dealing 

duck sparked another bout of 
controversy, causing Mr Ford to 
go to some length to explain that 
he did not mean to be so robust 
and was unlikely to refer to 
tigers again. 


a tiger's tail 
with a lame 


Spycatcher battle moves 
to NZ High Court 


BY DAI HAYWARD W WELLINGTON 


THE legal battle over the book 
Spycatcher, the memoirs of the 
former British MIS officer Peter 
Wright, moved to the New Zeal- 
and High Court yesterday. 

* The British Government 
sought a permanent injunction 
preventing the Wellington morn- 
ing newspaper The Dominion 
from publishing eztnds. 

It obtai ned at interim injunc- 
tion after The Dominion pub- 
lished the first instalment a few 
months ago. Suggestions that the 
British Attorney-General was 


“stubbornly Indulging in futile 
litigation” were completely mis- 
leading and false, said Mr Julian 
Miles, appearing for the Attar- 
ney-GeneraL 

The coordinator of New Zeal- 
and’s security service would give 
evidence to show the "damaf 
distribution of the book in i 
would cause to the co untry 's 
interest, Mr Miles contended. 

Britain's Cabinet Secretary; Sr 
Robert Armstrong, will give evi- 
dence in the case, which is 
expected to last about eight days. 


Jakarta students march 

BY JOHN MURRAY BROWN IN JAKARTA 


INDONESIAN students held a 
rare protest outside the State 
Parliament in Jakarta yesterday, 
calling on security forces to 
account for their handling of the 
riot in Sulawesi last month in 
which at least two people were 
killed. 

The army’s use of tanks and 
armoured personnel carriers to 


disperse the demonstration in 
Ujungpandang was widely seen 
as a deliberate show of strength 
by the Government in the 
run-up to pres id e n tial elections 
The students were objecting to 
the enforced wearing of motor- 
cycle safety helmets. Yesterday 
students demanded an army 
investigation into the incident. ‘ 


‘Election 
inflation 9 
hits Sonth 
Korea 

By Magg ie Bid In Bawd 

“TAKE the money and vote for 
me, 1 * the South Korean op 
tkm presidential 
Young Sam told his supc 
just after the recent hoi 
when election gift-giving was at 
its height. 

~ He and his fallow opposition 
candidate Kim Dae Jung fed 
they are at a grave disadvantage 
compared with Rah Tae Woo of 
the ruling party, for their i 
to funds is limited. 

~ About Won ltriDkm < 
expected to be spent before the 
December presidential election 

in a country where park barrel 
) remises, Jfapanese-style, have 
onneriy been helpful in obtain- 
ing votes. 

Many observers believe that 
buying support will not work 
this time, out concern is mount- 
over the effect of “election 
n" on South Korea’s earn- 


ing ovt 
inxiatioi 


Storage 

Systems? 



TO<M<tf flywatkrmidsg ia^afwn«^w|BipBia»g.SahM SST» «bffiry a barintl by »»p«rirTor» - gwm 80 ymm at 
the •buoy to donga gfitafiftwarift any naoiMnaff— from a steal* win wtn\ i < uIiIiiilj hi me ui tiitw uf imlmiiii 
toy to bi annariad hiathtoVrStog anbtnw ri^MTr^ ■ wr..|wwint. ( 

BicfcSippo nii d lta ading-aaA my it i in g hat — tetany. Wm nmSSa^ SSSSwSSSLMn 

tto toga ■xDdazdto mm mummhmrn. 


Quality has a name - SSL 



RACKING • SHELVING ■ CONTAINERS • STORAGE TROLLEYS • BOX PALLETS • AUTOMATIC 
RETRIEVAL SYSTEMS • RACK SUPPORTED BUILDINGS. 


Sri Lanka’s opposition leader warns of a ‘drift, to anarchy ’/reports Mervyn de Silva i 

Bandaranaike takes a stand on violence ■ 


MRS SIRIMAVO Bandaranaike, 
Sri Lanka’s former prime minis- 
ter, broke a long silence at the 
weekend on the country's politi- 
cal killings when she warned the 


problems because of 
export boom. 

Officials at the Bank of Korea, 
the central bank, announced ear- 

lier this month that they bad 
been unable to restrain the 

money supply within its target 

of an 18 per cent maximum 

increase. A 20 per cent rise was 

recorded last month, accompan- 

ied by a year-on-year inflation 
rate of 4 £ per cent. Last year’s 

inflation rate was 23 per cent. 

Planners have already 

enced a difficult year in 

to a surplus rather than a 

at economy.This year's cur- 

rent account surplus is expected 
to reach SlObn, producing, sub- 
stantial extra funds which 
appear to have fuelled the recent 
stock market boom. 

Wage risea of up to 20 per cent 
varaed in August following 
nationwide strikes have contrib- 
uted to the money supply rise. 

Extra election spending has 
taken a number of forms. Apart 
from gifts to voters of small 
items such as pens, inexpensive 
watches, cosmetics and food and 
drink, printing and publishing 
companies have been, flooded 
with orders for campaign post- 
ers, calendars, pamphlets and 
books promoting the candidates 
'followed by more scurrilous 
mola denigrating them). 

Perhaps the most Inflationary 
election-related spending relates 
to ca n didates' promises about 
future development. Pledges to 
boild motorways, electrified rail 
services and new ports, espe- 
cially in the under-developed 
south-west, are reported to have 
prompted a rush into speculative 
real estate buying in the hope of 
_ when land is eom- 
purciiased. 

Officials’ efforts to minimise 
the damagp so far have wirfcrf 
better than in previous years. 
The rise in the money supply 
before the 1973 election reached 
40 per cent, compared with 20 
per cent the previous year and 
real estate speculation produced 
price Increases of around 50 per 
cent compared with about 20 per 
cent at the moment. 

The South korean. economy 
can no doubt cope with a reason- 
able increase in inflation, but 
opposition presidential candi- 
dates are beginning to worry 
whether a fair election can be 
held after the distribution of so 
much largesse. 


Island" if the trend in political 
■violence and the "dangerous drift 
to chronic unrest ana anarchy" 
was not soon arrested. 

In a signed article in the Sun- 
day Sinhalese and English 
papers, Mrs Bandaranaike 
reminded President Junius Jaye- 
wardene that it was his duty to 
take the initiative against the 
outlawed JVP, the extremist Sin- 
halese party, and "the state- 
sponsored terrorism* of the rul- 
ing UNP. 

Mrs Bandaranaike, who was 
recently nominated by th e op po- 
sition Freedom Party (SLFP; as 
its presidential candidate for 
next year's election, is already 
being called “the next president 
of Sri Lanka” by sections of the 
Sinhalese press. 

More and more diplomatic mis- 
sions here are certainly behaving 
as if that could be the case. Mr 
Jayewardene is not entitled to a 
third tom unless the constitu- 
tion Is amended by a referen- 
dum. Fearing the result, he is 
unlikely to choose that course. "I 
shall retire in a year's time;" the 
81 -year-old President told the 
pres recently. 

Although UNP members and 
supporters were the principal 
its of JVP violence, the 
did not derive any satisfac- 
attaofar were a 



*T have an impossible arte- 
sian this time,” said BwmU 
de MeL Sri Lanka's Finance 
Minister, as he finished a 
final roust of talks with Mb 

key adv is e r s before pr ue nt- 
his eleventh budget 


Lag h 
today. 


S 

tian because the 


fijrlamvo Bandaranaike 


"threat to peace, social stability 
and the democractic system,* 
Mrs Bandaranaike wrote. 

She blazded 10 years of UNP 
misrule for the emergence of 
youth violence in tire mainly 
Sinhalese south. The postpon- 
ment of .general elections in 
19S2, unemployment, inflation, 
the creation of a party -controlled 
'job bank' for recruitment to 
state corporations and 'the 
stench of corruption at the high- 
est reaches of our society* had 
led to youth frustration and 
anger, she said. 

In a pointed reference to the 
c i rc um stances which led to the 
advent of the Tamil Tigers, the 
Tamil guerrilla group rased in 
the north and east of the coun- 
f Mrs noted 

elected leaders 


Mr.de Mel wee referring 
to the trem endo us pass ime 
from Ui cabinet and party 
colleagues to offer “quick 
fix* r emedies to help Presi- 
dent Jaymrde&e’s 
tied LO-year 

the 

youth violence. 

Over the weekend 
more ntpporten, e village 
council member and jl party 


organiser, were gunned 
< * < Tf*snybody is looking for 

a nick fix and quack reme- 
dies, be should find another 
finance minister,' Mr de 
Mel said. “My budget tomor- 
row will be a budget for 
economic ' r e c ove r y and 
revival but S shall certainly 
-bear in nbd the problems 
of youth unemployment and 
rising prices.” 

A substantial salary rise 
for all categories of work- 
ers and a medium term 
three year economic pro- 
gram to create half a mil- 
lion Jobs for young people 
win be the budget's high- 
lights. 


tty, Mr 
when 


"expelled from the parliamen- 
tary arena," young men seme the 
leadership and take to “vfofent 
paths." The TamO United Itera- 
tion Front Which won aD the 
seats in the north hi 1977 with- 
drew from Parliament ki -1988 
when the Government 'amended 
the constitution • forcing, the 
TULF MPS to take itt oath dfe»r 
vowing separatism . 

Mr Ranasinghe Premadaaa, the 
Prime Minister, tamed, the argu- 
ment the other way when he 
asked the SLFP not to encourage 
the JVP. What happened to the 
TULF could happen to the SLFP, 
he Warned. Mr Jayewardene 
went farther. Asked whether he 
included the SLFP among the 
JVP's allies, he saidb "Not the 
leadership bat lower down, there' 


are are links.* 


■' Mr Premadasa told Pazfiament 
last week that he had advised 
Che- c abinet to lift the bait an the 
JVP; Mrs Bandaranaike is 
reported to have discussed this 
rfnt with President Jayewar- 
on the last oreastari'they 
met.' Mr Jayewardene had said 
then that the security agendas 
had advised against it; 

Mr Ronnie at Mel, the Finance 
Minister, who represented for 
many years a constituency in the 
deep south, the JVP stronghold, 
is now- worried that his chances 
of raising about $400ra at a spe- 
cial Worm Bank-sponsored meet- 
ing ofdonors may be w recked by 
the -spread of violence in the 
'South. The aid group meeting on 
December 4 is likely to approve 
-assistance for rehabilitation pro- 
grammes in the ravaged north 


and east. In an interview Mr de 
Mel said: "Action in the deep 
south is equally urgent Jobs is 
the key and that means short 
and medium-term projects 
The Special Task Force, 
trained by former personnel of 
Britain's SAS commando group, 
has now moved its base to the 
Galle-Matara southern coastal 
districts, along with the Joint 

Operations Command. __ 

The Government has allowed 
each UNP MP to bave 200 armed 
“home guards” for their personal 
protection. Opposition MPa claim 
that “JVP suspects" are being 
indiscriminately arrested in mas- 
sive sweeps and tbe homes of 
sympathisers burnt. Mrs Bandar- 
anaflee denounces this party 
militia as “short-sighted and 
coun te r- productive. _ 

“ TheJVP, unlike the Tamil 
Tigers, has no steady source of 
arms supplies or a rear-bare. The 
Tigers had TamO Nadu, the big 
south Indian state, separated 
from northern Sri Lanka by the 
narr ow Palk Straits. But the 
.JVP, . which has dropped its 
-Marxist trappings for an indige- 
nous and more potent Sinhalese 
Buddhist militancy, draws ready 
support for its virulent anti-In- 
dian propaganda in the face of 
the spreading violence and an 
incipient Insurgency in the deep 
south.' 

Sri Lanka's political establish- 
ment seems to have been rudely 
awakened to a new and poten- 
tially more dangerous threat. 
The police today declared 
another "red alert” In Colombo, 
which will last a week. 


SIEMENS 



moving along the right lines 


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10 


Financial Times Tuesday November 17 1987 


UK NEWS 


Coopers plans £lm drive 
to promote audit service 


BY RICHARD WATERS 

COOPERS &~L.y brand, Britain's 
second biggest accountancy firm, 
plans to spend about £Im during 
the next month persuading peo- 
ple that auditing need not be 
boring. 

Coopers' campaign, the first 
extensive effort by a firm to seU 
Its auditing services since the 
advertising ban on accountants 
was lifted three years ago, 
threatens to provoke a rash of 
similar efforts from competitors. 

Price Waterhouse experi- 
mented with advertising its audit 
services two months ago, while 
Peat Marwick McLIntock has 
briefed its two agencies - Saatchi 
& Saatchi and Collett Dickenson 
Pearce - on a possible campaign 
should Coopers succeed In taking 
a larger share of the market. 

Competition in the audit mar- 
ket has become stiller in recent 
years and there have been accu- 
sations of cut-throat pricing, but 
auditing is still an attractive 
bumness to be in. Rising costs 
and falling fees have been, met 
by extensive efficiency mea- 
sures. 

According to Mr Don Hanson, 
managing partner of Arthur 
Andersen, his firm's audit 
department has increased its pro- 
ductivity by 5 per cent in each of 
the past seven years. 

Also, large firms have seen 
their share of this mature mar- 
ket grow at the expense of 
smaller firms. Price Waterhouse 
reports that the chargeable time 


AUDIT FEES OF URGE ACCOUNTING FIRMS <19861* 



% of total 

Firm 

Fees (Em) 

fees 

Peat Marwick McLintock 

134.7 

65 

Price Waterhouse 

73.4 

53 

Delortte Haskins & Sells 

67.8 

56 

Ernst & Whinney-t- 

663 

n/a 

Coopers & Lybrand 

65.8 

46 

Touche Ross 

53.0 

57 

Arthur Young 

46B 

52 

Arthur Andersen 

33.8 

37 

-InrlllfT irm.ifiifl ..tflmal. 





Sawccc The AecoMXant 


its staff spend on auditing rose 
by 10 per cent in the year to 30 
September. 

Coopers’ campaign is based on 
a new audit ‘product” designed 
to increase the value of an audit 
to clients. This involves produc- 
ing a ‘health check' on a com- 
pany's control systems and the 
quality of management informa- 
tion, as well aa undertaking the 
usual checks to certify the 
annual accounts, said Mr Brian 
Jenkins, head of audit. 

The usual letter to manage-, 
ment at the end of an audit 
pointing out systems weaknesses 
will be replaced by a more exten- 
sive review assessing systems 
against best practice, he said. 

Other auditors are moving in a 


similar direction. KPMG - the 
world's largest firm, which is 
represented in. Britain by Pest 
Marwick McLintock - has 
recently introduced a systems 
check to its audit. 

The Coopers move, which is 
designed to go some way towards 
meeting public expectations, will 
not cost “significantly more," Mr 
Jenkins said. 

Coopers has made its name in 
recent years as the firm to have 
diversified most from its tradi- 
tional auditing bate. Its manage- 
ment consultancy division, with 
fees last year of nearly 540m, 
accounts for 27 per cent of its 
business. Its research shows that 
some clients think it is no longer 
interested in audit - and this is 
what prompted the campaign. 


Damages paid 
over Guinness 
article 

Financial Times Reporter 

MR MESHULAM RIKLIS, head Of 
Schenley Industries, the US 
drinks conglomerate, is to be 
paid substantial libel damages 
over an article in The Daily Tele- 
graph alleging that he had 
received money alleged to have 
been stolen from Guinness dur- 
ing its takeover bid for Distillers. 

The damages, the amount of 
which was not disclosed, would 
be donated to charity, the High 
Court was told yesterday. 

Mr David Eady. QC, for Mr 
Riklia, said that The Daily Tele- 
graph had unreservedly with- 
drawn the allegation that Mr 
Riklia was the ultimate recipient 
of certain payments made by 
Guinness to subsidiaries of th 
Heron International Grou 
which were alleged to have 
stolen from Guinness. 


Advertisers’ institute 
sets up portable pension 

BY ERIC SHORT, PEMSJONS CORRESPONDENT 


THE GROWTH in industry-wide 
pension schemes to meet the 
new pensions environment next 
year progressed yesterday with 
the Institute of Practitioners in 
Advertising's launch of its porta- 
ble pension plan, covering the 


Next year, under the 1986 
Social Security Act, employees 
can opt out of the state eam- 
ings-related pension scheme 
(Serps) and provide their own 
-personal pension, or stay with 
their employer’s pension scheme 
The institute scheme is 
designed by consulting actuaries 
Clay & Partners. It aims to pro- 
vide a company pension arrange- 
ment to match personal pen- 
sions, with comparable 
■investment performance and 
lower expenses and without 


involving employers in the prob- 
lems and workload of arranging 
a scheme: 

The scheme begins next ApriL 
It will be available to all mem- 
bers of the institute and comes 
in two forms - contracted out of 
Serps or In addition to Serps. In 
both cases the accrued value of 
an employee's pension Is fully 
transferable between employers 
in the advertising industry or to 
another pension scheme. 

The institute scheme will be 
on a self-administered basis, 
investment and administration 
being contracted-out. The insti- 
tute is appointing an investment 
manager to handle the funds on 
a centralised, unitised basis. 
Administration will be handled 
by Wei beck, a specialist firm. 


Revenue 
blocked 
in £18.5m 
tax case 

By Raymond Hughes, Law 
Courts Correspondent 

THE INLAND Revenue has 
suffered a setback in its 
attempts to recover more 
tium £i8.Sm in tax from Mr 
Soy Tucker, bankrupt eo- 
fonnder of Boesminster, a 
company that devised, tax 
avoidance schemes in the 
1970s. 

The Coart of Appeal yes- 
terday refused to make 
orders that would have 
enabled Mr Tucker’s trustee 
in bankruptcy to examine 
his brother, Keith, who Is 
seen as sn important wit- 
ness aa regards Mr Boy 
Tucker’s financial affairs. 

The court allowed an 
appeal by Mr Keith Tucker, 
who lives in Belgium, 
against a High Court ruling 
that an order requiring him 
to come to England to be 
examined could be served 
On bHn in Bel gium. 

A cross-appeal by the 
trustee for an order that Mr 
Keith Tucker be examined' 
in Belgium was dismisse d 
Lord Justice Dillon said 
that the court had no juris- 
diction to authorise the ser- 
vice of the order in Bel- 
gium, and as Mr Keith 
Tucker could not be com- 
pelled to submit to exami- 
nation in Belgium there was 
no point in making the 
order sought by the trustee. 

A reason for not involving 
the Belgian court by asking 
it to examine Mr Keith 
Tucker was that the case 
was a tax bankruptcy. Lord 
Justice DUlon said. Hie 
trnstee’s ultimate reason 
for wanting an examination 
must be to obtain Mr Boy 
Tucker’s assets to satisfy 
the UK Revenue. 

From the Belgian court’s 
point of view that would be 
enforcement of a foreign 
revenue law and contrary to 
established principles of 
International law. 

Lord Justice Dillon said 
that the whole history of 
the matter Indicated a total 
unwillingness on Mr Keith 
Tucker’s part to co-operate 
with the trustee. It could 
not be disputed that he was 
a very important witness in 
his brother’s . bankruptcy. 
The trustee wanted him to 
produce documents relating 
to a large number of compa- 
nies, trusts and properties. 


Developer chosen for central 
station site in Manchester 


BY PAUL CHEESERK3HT, PROPERTY CORRESPONDENT 

PLANS to revive the heart of 
Manchester moved forward yes- 
terday when Merlin Interna- 
tional Properties was chosen to 
redevelop a 27-acre site adjacent 
to the old Central Station, now 
reborn as the G-Mex centre. 

Merlin won a competition to be 
the preferred developer of a ven- 
ture which could have an ulti- 
mate investment value of 5100m. 

The competition was organised 
by Central Station Properties, a 
company set up in 1880 by the 
now-defunct Greater Manchester 
County Council with Commer- 
cial Union. Assurance funds to 
hold and redevelop the whole 
central station area. Twelve com- 
panies were invited to submit 
schemes. 

The new project will be 
designed to draw tourists into a 
hitherto rundown area and to 
link up with G-Mex and the 
facilities provided by the reno- 
vated Midland Hotel and the 
Free Trade Hall. It would be 
linked to the Light Transit Rail 
system being designed for Man- 
chester and for which EC funds 
have been requested. 

- Historic properties to be 
retained on the site included the 
longest Victorian terrace in Man- 
chester and the listed Great 
Northern Warehouse. 

The economic base of the 
scheme will be retail progaty^ 



- • • 


but speciality shopping 

blended with entertainment, 
business and housing. Detailed 
plans are still being worked out, 
but the general tone is consistent 
with the criteria laid down in 
the Manchester dty centre local 
plan, published in-1984. 


Central Station Properties and 
Merlin expect soon to lodge a 
planning application with Man- 
chester City Council, which is 
anxious to see development in 
this area dovetailed with the 
core of the city. 

The legal relationship between 
the two companies will not be 
defined for about six months, so 
that Central Station Properties 
-can still sever its link with Mer- 
lin. The intention is to establish 
a subsidiary joint ve ntur e com- 
Into which Central Station 
will put the land and 
will put in the finance, 
design and project management. 

' This wfll be the biggest ven- 
ture undertaken in the UK by 
Merlin, which is linked with the 
companies in Australia 
the Rouse companies in the 
US. Hayson has been developing 
the Darling Harbour retail and 


Havson 
and the 


leisure complex in Sydney. Mr 
James Rouse has been a pioneer 
of urban regeneration schemes 
based cm a mixture of retail and 
leisure activities, starting with 
Baltimore. 

• Merlin will announce today, 
with the Scottish Development 
Agency, the details of a special- 
ity shopping scheme in Glas- 
gow’s Merchant (Sty, just east of 
the dty centre. 

This follows the disclosure 
that City .of London Group, a 
subsidiary of bury International, 
has withdrawn from, the plans 
for an inner dty shopping centre 
in Glasgow, to be developed in 
conjunction with a concert halL 

The company said it was not 
prepared to make a financial 
commitment at the short notice 
demanded by Glasgow City 
Council. 


W Midlands planning curb 


BY OUR PROPERTY CORRESPONDENT 


THE GOVERNMENT has told 
town and country planners in 
the West Midlands that addi- 
tional large regional shopping 
centres of lm sq ft or more are 
unlikely to be justified in the 
West Midlands. 

There is some co ntrove rs y in 
the region about the impact of 
such centres on the vitality of 
existing town centres when. the 
focus of official policy is to 
revive jaded inner urban areas. 

The government message is 
contained in a draft of — ‘ — ' - 


formally - approved would be the 
framework for planning deci- 
sions taken by the boroughs in 
the area. 

The draft guidance Is the first 
offered to a metropolitan county 
and would affect land-use plan- 


ning decisions for the rest of the 
century. 

West Midlands planners have 
been subject to a plethora of 
planning applications for large 
shopping centres which, if 
granted, could swell the total 
amount of retail space by about 
7m square feet, or the equivalent 
of about 40 per cent or existing 
space in the nine main centres of 
tnearea. 

Drivers Jonas, the surveyors, 
had advised the seven boroughs 
in the area that the potential 
growth in expenditure on dura- 
ble goods in the area could be 
met by developments already 
under way or with planning per- 
mission. This refers to the 
expanding shopping centre at 
Dudley, controlled by Richard-, 
son Developments, and the 


potential centre at Sand well to 
be constructed by Cameron Hall 
Developments. 

Responding to the Govern- 
ment’s draft guidance. Drivers 
Jonas thought it unlikely that 
other applications for big centres 
would win the approval of the 
Environment Secretary and that 
the developers should be consid- 
ering alternative uses for then- 
sites. 

The draft guidance, however, 
does not totally preclude other 
centres. It notes that it Is not the 
function of the planning system 
to inhibit retailing competition. 
While the existing centres wifi 
continue to be the main focus of 
shopping, some other develop- 
ment could take place, though 
the Im so ft centres are unlikely 
to be justified, the Governments 
document said. 


Housing 
market still 
buoyant 
says survey 

By Andrew Taylor 

THE HOUSING market remains 
buoyant and most estate agents 
are. as yet, unaffected by the 
stock-market crash, according to 
a nationwide house-price survey 

{ rublished today by the Royal 
nstitution of Chartered Survey- 
ors. 

More than 100 estate agents 
were ask ed if house prices had 
risen or fallen in the three 
months to the end of. October 
(Share prices began to plunge on 
October 19.) 

The institution says prices con- 
tinued to rise in the summer far 
the three months to the end of 
October more than half the 
agents questioned reported rises 
of at least 2 per cent and jpst 
under a quarter said prices rose 
by 5 per cent. 

It said some Greater London 
agents were expecting a deceler- 
ation in the rate of rises follow- 
ing the stock-market crash. 

An agent in Newham, London, 
said; ‘Sales activity in east Lon- 
don is well down even allowing 
for the usual quiet months pre- 
ceding Christmas. Prices have 
stabilised. In many cases asking- 
prices are being adjusted down- 
wards to attract buyers. The 
recent uncertainty surrounding 
the stock-market crash will do 
nothing to Increase confidence.’ 

Most other Lon don-area agents 
said sales in the survey period, 
including immediately after the 
stock-market fall, were steady or 
buoyant. 

Mr Peter Miller, of the institu- 
tion, said: The fluctuations of 
the stock market have helped 
demonstrate the value of bncks 
and mortar as a steady and reli- 
able investment.” 


MEPs promote 
barrier-free EC 

Financial Times Reporter 

A CAMPAIGN to sell to British 
industry the benefits of a ‘barri- 
er-free” European Community is 
being spearheaded by a group oi 
Tory Euro-MPs. 

They want to help business- 
men take advantage of the 
removal of restrictions on the 
movement of goods, services and 
people, which is intended to take 
effect by 1992 

The campaign has won the 
icking of the Confederation of 
British industry and the Institute 
of Directors,- which are working 
with the MEPs. 


.. ' - : • 

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UK NEWS 


“sin. 

< 

‘yaiit 

- s >« 


Spending spree continues 
as retail sales rise 0.8% 


BY RALPH ATKINS AND.USA WOOD 

BRITAIN’S retail sales grew.-ITI 
strongly In October and more : H 
than reversed an unexpected fall Vi 
in the previous month, according ii 
to official figures pahiished yes* 11 
terday. 

The seasonally adjusted Index u 
of retail sales, produced by the 
Department of Trade and Indus- , 
try, rose .a provisional 0.8 per *■ 
cent to a' record leveL fa Septem- 
ber sales fell 0.5 per cent 41 

The upturn, . which . -was 
slirfidy higher, than expected jjy 
independent economists, ■ sug- 1' 
ge8ta the long-running surge in 
high street sales is hot slowing 
down. In the three months to 1 
October, sales were almost 8 per ^ 
cent higher than the previous l— - 
three months and nearly 0U per 
cent above the same period last inc 
year. bei 

The index stood at 182:9 sun 
(1980-100) fa October compared sab 
with 131.8 in September and nu* 
132.5 at the previous peak £n mo - 
August ing 

Further growth is expected in bor 
the next few months as incomes *1 
continue to rise faster than infla- ufa 
tion. Sales will also be boosted' In h*w 
the pre-Christmas period, by are 
recent mortgage rate cuts arid an lea* 
acceleration fa consumer credit, -nea 
However, October’s upturn is Boa 
likely to fuel worries about an we l 


RetaH Sales 

Vohimo.Mtaonafly adjusted 
1980-100 
135 



1985 ,1988 .1987 
soowcDw«.rtlbd*»Muttr 


increased volume of imports 
being sucked in to meet con- 
sumer demand.- Particularly fast 
sales growth fa the next few 
months could also dissuade the 
monetary authorities' hum mak- 
ing further cuts, in the cost of 
borrowing.' 

"If we see retail sales contin- 
uing to grow strongly as they 
have in October, then 1 think we 
are unlikely to see further signif- 
icant cuts in Interest fates in the 
ji ear term, ’ ‘said Mr Kevin 
Boakea, UK economist at Green- 
well Montagu. 


The recent slump is unlikely to 
have much effect on sales, as 
shares form only a relatively 
small part of consumers' wealth. 
However, spending patterns 

could alter If there is a prolonged 
period of uncertainty. \ 

Mr Richard Weir, director gen- 
eral of the Retail Consortium 
said the Increase was at first 
sight surprising, given the hurri- 
cane in the south-east fa October 
and the downturn on the Stock 
Exchange. 

However, he said: 'While the 
hurricane had an impact, with 
people having difficulty fa get- 
ting to shops, the Stock 
Exchange crash has made no dif- 
ference to the ordinary con* 
sumer.' 

Food, furnishing accessories, 
gifts, sports clothing and equip 
meat had sold nartictilarly well. 


members to- believe they will 
have a very good Christmas,' I 
said Mr Weir. . . • 

John Lewis Partnership, with 1 
21 department stores, recorded 
an Increase fa sales of 12 per 
cent on the same period last year 
with fashion items, mot's and 
children's clothing performing 
well 


NUM leadership battle looms 


>s pro® 
cr-freej 


BY CHARLES LEADBEATER 

MR ARTHUR SCARGILL, the 
National. Union of Mineworkera 
President, seems increasingly, 
likely to face a challenge for nfs 
position from Mr Johnny Walsh, 
a fuH-timeNUM official in York- 
shire, in the union's presidential 
election to be held in January. 

This emerged as the Yorkshire 
NUM’s area council voted over- 
whelmingly to recommend that 
Yorkshire branches should nomi- 
nate Mr Scargill for the presi- 
dency. 

Mr ScargilL who was elected 
for life in 1981, triggered the 
election -last, week by banding fa 
his resignation and announcing 
‘-hat he would seek a renewed 
mandate. The period for nomina- 
tions closes on December 14 and 
the vote will follow on January 
22 . 


Mr Walsh, speaking after the 
council meeting in Barnsley, 
Yorkshire, said he would con- 
sider standing for election, if he 
was backed by more than one 
area, representing a spread of 
opinion in the union from both 
left and right-wing areas. 

It .is understood that area lead- 
ers in both South Wales and 
Scotland, have been in. contact 
with Mr Walsh and hope to per- 
suade their areas to support his 
candidacy along with the union's 
moderate white collar section; 

Mr Walsh is widely regarded as 
the only candidate who could 
challenge Mr Scargill in York- 
shire, which holds the key to the 
election because it- accounts for 1 
one third of the votes. In the 
1984 election for the NUM’s gen- 
eral secretary position, Mr Walsh 


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polled 28,000 votes in Yorkshire, 
against 20,000 for Mr Peter 
Heathfleld, Mr ScargUl'a pre- 
ferred candidate, , 

Mr Jack Taylor, the Yorkshire j 
-area president, who recom- 
mended that the council should i 
batik Mr Scargill, said he had the i 
ability and charisma to unify the 
union. 

However, Mr Taylor acknowl- 
edged the election might divert 
the union from a set of pressing 
problems, including British 
Coal’s drive for further pit do- 
. sures and the introgpetion of. 
flexible working. 

He also warned that an elec-, 
tion contest could damage the 
union's, unity. . He clearly dis- 
tanced himself from Mr ScargUTs 
recent attacks on the South 
Wales area for pursuing so-called 
'new realist ” policies. 

Employers 
say labour 
Bill is 
t vindictive , 

By Mchaal SkapMwr 

PROVISIONS in the new 
Employment BQl which prevent 
trade unions from disciplining 
members who cross picket lines 
will-result fa severe disruption to 
British industry, Mr John Lyons, 
general secretary of the Engi- 
neers and Managers Association 
warned yesterday. 

Mr Lyons told a conference of 
the British Institute of Manage- 
ment that while some of the gov- 
ernment's earlier trade union 
legislation had been 'justified 
and salutary,” the current bill Is 
essentially a vindictive piece of 
legislation.” 

He said that by preventing 
unions from ' disciplining mem- 
bers who continued to work 
after a legitimate ballot fa favour 
of strike action, the bill would 
have two detrimental effects. 
The first would be an increase in 
'local, informal disciplinary 
action.” 

• The second would be an 
increase to unofficial disruption, 
even when there had been a bal- 
lot against strike action. Encour- 
aging a minority to defy the 
wishes of a majority could work 
both ways, he warned. 

'Because this bill is unfair and 
unreasonable, it will, in time, 
bring the law into contempt. It 
will provoke widespread defi- 
ance,- he said. 

On management-onion rela- 
tions, Mr Lyons said that there 
is no doubt that the pendulum 
has swung back in manage- 
ment's direction and much of 
.that has been necessary and 
right." - 

But he pointed out that the 
Trades Un/on Congress stEQ had 
■9m members. Hostility towards 
.trade unions might not continue 
for much longer, he said. 


VSSUSSess 

wnatcm# 

/issv 

\S/ 

/\58\ 


New wave 
of strikes 
hits car 
industry 

By Jmny Bums J ahour Staff 

THE CAJR industry emerged 
from a brief weekend recess 
yesterday to face another 
wave of Industrial action 
unprecedented in recent 
yean. 

Production at Austin* 
Rover's Cowley assembly 
plant, near Oxford, was 
halted yesterday as 3,500 
manual workers called a 24- 
bour unofficial strike. 

The strike, the first at the 

plant for three years, was 
in protest at the company's 
plans to divert ftmds from 
its pension scheme 

Austin Rover described 
the strike as “unconstitu- 
tfonaL" The company said 
workers had staged their 
protest against the instruc- 
tions of officials in the 
TGWU transport union. 

Ford, meanwhile, is suf- 
fering its second consecu- 
tive week of industrial 
unrest, in a separate dis- 
pute over its three year 
wage offer which fa linked 
to significant changes in 
working practices. 

Yesterday 4,000 manual 
workers at the company's 
giant plant at Halewood, in " 
the north-east of England 
walked out just as 600 
supervisors returned to 
work after a five day stop- 
page- 


TUC says job trend 
is against ftuther 
membership growth 


BY PHHJP BASSETT, LABOUR EDITOR 


EMPLOYMENT trends will con- 
tinue to work against the growth 
of trade union membership for 
the foreseeable future, the 
Trades Union Congress acknowl- 
edges in a confidential analysis 
of unions and the labour market. 

A series of internal papers pre- 
pared by the TUC for a meeting 
tomorrow of its special review 
body on the future of trade 
unionism in Britain, paints a 
starkly realistic picture of the 
context for change of unions fa 
the UK. 

Among the conclusions are: 

• Future employment patterns 
suggest poor prospects for union 
membership growth because of 
limited prospects for any major 
falls fa unemployment, the con- 
tinued fall in employment in 
manufacturing industry and the 
increase fa the largely unorgan- 
ised* private service sector; 

• Union membership gains In 
the 1970s have effectively been 


wiped out; 

• Although employment growth 
has been recovering from the 
recession since 1982, trade union 
membership has by contrast con- 
tinued to fall; 

• Unions have, been losing an 
annual average of 250,000 mem- 
bers, while the number of 
employees has been growing at a 
rate of about 150,000 a year; 

• Employment growth since 
1983 has been concentrated in 
regions where trade unionism 
has been weak and future popu- 
lation growth win tend to be to 
areas of relatively low union 


organ i sation and membership; 

• While the TUC claims that 
labour market chan ge has been 
more unfavourable to unions in 
the UK than elsewhere, the 
unions accept that although 
trade unionism internationally 
has held its own, this has 'not 
been the case in Britain. It recog- 
nises that the loss of member- 
ship fa the UK has been on a 
scale "unmatched* elsewhere. 

The conclusions are not neces- 
sarily new - neither are similarly 
graphic findings fa studies for 
the review body on the implica- 
tions for unions of economic, 
political and social change, and 
of the public's perception of 
trade unions. But much of it goes 
further than the TUC has previ- 
ously gone in looking at the am 
rent stole of British trade union- 
ism. 

The TUC’s labour market 
paper concludes: “It is hard to 
avoid the conclusion that the 
growth areas fa the economy 
will be In industries, regions ana 
districts and among groups of 
workers where trade union 
organisation has traditionally 
been weak." 

British unions’ recent reliance 
on the public sector as a main- 
stay of union organisation is also 
threatened: "Measures such as 


affect one of the remaining areas 
of trade union strength, the pub- 
lic sector." 


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TURKISH 

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The Financial Times proposes to publish this 
survey on 

WEDNESDAY 16TH DECEMBER 1987 
For Jurther information please contact : 
Mr. Sergio Costante 
Tel: 5221304/5277084 
Address: Yali Koskn Caddesi, 

Vakif Yalikosku Han, 

Kat 3 No. 301 Sirked, Istanbul. 

FINANCIAL TIMES 

EUROPE'S BUSINESS NEWSPAPER 





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12 


UK NEWS 


Objections to extradition 
fade as Ministers meet 


BY OUR DUBUN COmteSPONDENT 


UR TOM KING, the Northern 
Ireland Secretary, sat down with 
Irish Ministers m Dublin yester- 
day to thrash out new moves to 

combat IRA violence in the wake 
of the Poppy Day bombing in 
Enniskillen. 

The meeting of the Anglo-Irish 
conference was devoted to secu- 
rity matters. Meanwhile Mr 
Charles Haughey, the Irish Pre- 
mier, faces a political test later 
this week when he Is expected to 
unveil to his parliamentary 
parly an extradition agreement 
with the UK 

Yesterday's talks centred on 
how operational cross-border 
security could be improved. One 
suggestion that has not been 
denied by Dublin is that a crack 
anti-terrorist police unit be 
established by the Irish Gaidai. 

Mr King was accompanied by 
Mr John Stanley, Minister of 
State, at the meeting with Mr 
Brian ‘ “ 

Minister, 
the Justice 
Police Commissioner, Mr 
Eamonn Doherty, and his north- 
ern counterpart, Sir John Her- 
mon, were also present. 

A terse communique confined 
itself to saying that the meeting 
had discussed key aspects of the 
security situation, adding that 
both sides were agreed on the 
need for a very positive 



Charles Hsnghey: faces test 


Tore the conference Mr King 
paid a call on Mr Haughey at 
which the outline of the extradi- 
tion agreement is likely to have 
been discussed. Parallel discus- 
sions involving law officers and 
officials are taking place, centr- 
ing on the form or guarantees 
which British law officers will 
give when extradition warrants 
are being sought. 

Irish objections to ratification 
of the Extradition Act crumbled 
after the Enniskillen bomb. All 
sides acknowledged the attack 
had rendered further resistance 


to the Act 

Fianna ran oacKoencfters are 
uneasy about the prospect of the 
Extradition Act being Imple- 
mented. According to one of 
them, Mr Hugh Byrne, the major- 
ity of party members stDl feel 
they cannot trust British justice. 
Some deputies are calling for 
prjma fade evidence to be pro- 
duced before a warrant is issued 
by the Irish authorities. 

However, backbenchers are 
. unlikely to oppose ratification in 
the Dali on an Issue that could 
severely embarrass the Fianna 
Fall minority government. 

Mr Neil Blaney, the Indepen- 
dent republican deputy, has said 
he will move a Dail motion call- 
ing for repeal of the Act, but he 
w£u find It difficult to muster 
the support of the 10 deputies 
necessary to have the subject 
debated. 

Mr Haughey has said that 
although he will listen to his par- 
liamentary party, any decision 
on extradition is one for his gov- 
ernment. A Cabinet meeting 
today will discuss the terms of 
any agreement and these will be 
unveiled at a backbench meeting 
tomorrow. 

Mr Hai 
the Dail 
order 

Act, unless* Mr"Blaney is success- 
ful in forcing a debate. 


Rank to build £17m leisure complex 


BY DAVID CHURCMLL, LEISURE INDUSTRIES CORRESPONDENT 


THE RANK Organisation is to 
develop part of the garden festi- 
val park at Stoke-on-Trent, 
Staffs, into a &17m leisure com- 
plex, creating more than 300 
jobs. The complex should be 
fully open in late 1989. It will be 


linked to a new 300,000 sq ft 
shopping development 
The festival was opened last 
year to rejuvenate derelict land 
in the Potteries. It was seen as a 
cost-efficient means to restore 
urban pride and boost morale. 


and as a short-term project. 

However, Rank decided the 
area has potential for a leisure 
complex. The organisation says 
there are more than lm people 
living within 30 minutes' travel- 
ling time. 



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BETWEEN LONDON 
AND DUSSELDORF 

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passengers. 

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that Air Canada has room with a view for you. 

For more details contact your travel agent, 
or ring Air Canada on 01-759 2636 from 
London, or 0800 181313 from anywhere 
else in the UK. 


I*. 


A BREATH OF FRESH AIR 



AIR CANADA 


Minister 
warms to 
sponsored 
television 

By Raymond Snoddy 


THE GOVERNMENT la mov- 
ing strongly towards the 
introduction of sponsorship 
mb an additional method of 
fi nan cin g British television. 

Mr Timothy Benton* the 
Home Office Minister 
responsible for broadcast- 
ing, said yesterday; *We 
have been unnecessarily 
coy in the past in this coun- 
try over oar approach to 
sponsorship.” 

Business organisations 
have become Increasingly 
interested in being allowed 
to sponsor television pro- 
grammes. But In practice 
the rales for both the BBC 
and independent television 
have been so restrictive 
that little programme spon- 
sorship money has actually 
been raised. 

“It does seem clear to ns 
that what has been 
regarded as the unaccept- 
able face of commercial 
broadcasting is now increas- 
ingly accepted by broad- 
casters aa a legitimate 
source of funding,* Mr Sen- 
ton said at a butch on spon- 
sorship. 

The' Government was 
waiting for proposals from 
the broadcasting authori- 
ties and wonld “consider 
carefully alt those propos- 
als made to it by the broad- 
casting authorities for a 
change in the existing 
fram ewo rk of legislation on 

sponsorship.” 

The Independent Broad- 
casting Authority has set 
np a working party to con- 
sider the Issue. The BBC has 
already asked the Govern- 
ment for permission to 
allow Independent produc- 
ers making programme* for 
the corporation to use spon- 
sorship finance. This would 
require a change to the BBC 
charter. 

Mr Renton said yesterday 
that the Government was 
looking at the implications 
of changing the BBC's char- 
ter. “In principle we are 

S apathetic to the case 
t has been put and we 
are anxious to explore fUly 
the possibility Of malting 
the change sought by the 
corporation,” he said. 

The minister made it clear 
that a ny changes wonld 
affect ITV as well as the 
BBC. He emphasised that 
any extension of sponsor- ■ 
ship would be dependent on 
“transparency* - the spon- 
s#saUp being apparent to 
the viewer and the reten- 
tion of editorial control by 
the broa dc asters. 

Mr Pan! Styles, director 
of the Indejpsffldent Pro- 
gramme Producers Associa- 
tion, said that Mr Benton's 
speech had broken new 
ground. It was “clearly a 
green light to the BBC for 
discussions with indepen- 
dents on the possibility of 
sponsored progi 


EC review 
of Wales 
criticised 


CRm JkdMftsohmd kl«wadn>« 

Of funnony wmiiuii, 

Welsh Correspondent 

THE EUROPEAN 1 Communi- 
ty's recent review of 
regional prosperity which 
claimed, among other 
things, that Wales was as 
prosperous as the south- 
east of England was flawed 
in this assessment, accord- 
ing to the Government. 

Mrs Lynda Chalker. For- 
eign Minister, has tend the 
European Commission In 
Brussels that the report 
was baaed on out-of-date 
Information and incorrectly 
extrapolated. 

She has told the Welsh 
Counties Committee, which 
co-ordinates economic pol- 
icy among the eight Welsh 
counties, that there were 
bound to be changes in the 
European Regional Fund 
following the accession of 
Spain and Portugal to the 
community. But the Govern- 
ment's aim was “to ensure 
that all the EC funds con- 
tinue to be an effective 
adjunct to our own assis- 
tance to the regions and to 
the unemployed.” 

Mrs Chatter’s comments, 
made in a letter to the com- 
mittee, follows a meeting 
between Mr Say Owen, its 
eh,! rami, and twmwmH ty 
officials la Brussels when 
Mr Owen claimed that the 
commission's third periodic 
report on regional policy 
gave “a totally false imprea - 
sion of the relative pros p er- 
Ity of Wales." 

The report proposes to 
reform the regional, social 
and agricultural guidance 
funds to concentrate 
resources on the communi- 
ty's “very poorest areas,* 
under which only Northern 
Ireland in the UK wonld 
qualify. 

• The Welsh Office has 
awarded a 510m contract 
for a three-mile bypass of 
Northop In North Wales to 
ARC Construction. 

Work will start before the 
end of the year and should 
be completed by the antuma 
of 1989. 


Financial Times Tuesday November 17 1987 . 


David Brindle on the review of a training network 


SkUlcentres fight for their life 


TO MANY employers, Sldll- 
, centres have the Image of bam- 
like 1940a factories training rank 
upon rank of centre lathe opera- 
tors for a hdn -existent local 
machine tool in dustary. 

There will thus be consider- 
able acclaim for the Govftm- 
' merit’s announcement of an 
immediate review of the Skills 


60 remaining centres have had 
their day. 

But the SkUlcentres’ friends 
and defenders - of whom there 
are many who will make their 
voices well heard before the 
review is acted upon nett spring 
- say that while allegations of 
out-dated, expensive training 
may have once been true, they 
■no longer are. 

The average Skillcentre, main- 
tain its champions, has shaped 
up to the changing face of indus- 
try. has cut costs so that it is 
both competitive and self-financ- 
ing, and Is fulfilling a crucial 
role that neither the private sec- 
tor nor further education col- 

le gs ca n, und ertake . : 

"* The Skilicentres grew outof 
the need to train ana retrain ser- 
vicemen returning from war in 
1945b In 1983, they and the Man- 
power Service Commission's 
mobile training agency were 
grouped under the free-standing 
STA and charged to break even 
fay 1986-87. 

The number of SHU centres 
and annexes was cut from 87 to 
60 In 1985, with the total staff 
duly falling from 3,810 to 2£4 a 
In 1986-87, on target, the STA 
made a surplus of 50.6m on 
income of 555 .3m from the MSC 
and 58.4m from employers - the 
latter figure rising sharply from 
55.6m the previous year. 

That may be so, argue the crit- 
ics and, indeed, the Government, 



but both the National Audit 
Office and the Commons Public 
Accounts Committee have in the 
past nine months exposed the 
relatively high cost of Skillcentre 
training. 

Reports by both bodies found 
that the MSCs practice of pur- 
chasing fixed amounts of train- 
ing at Skflleentrea had incurred 
considerably higher costa than 
would have ueen the case at col- 
leges or other providers. There 


Was also a suggestion that some 
courses would not have been run 
but. for a requirement to use 
SkUlcentres, 

The MSC told the Commons 
committee that the gap between 
the cost of a Skiflcentre course 
and a college course, had been 
narrowed from 563 in 1983-84 to 
530 in 1986-87 - a disparity justi- 
fied to some extent by Skill- 
centre courses being more capi- 
tal-intensive. 


Further, the MSC reported an 
improvement In placement in 
jobs of Skillcentre trainees: 
although there had been a 
poorer record, compared with 
colleges and other providers, by 
198647 there was parity across 
the beard at a 70 per cent suc- 
cess rate. 

Why, then, the review? Have 
the SWBcentres not done every- 
thing asked of them? 

One reason, say training con- 
sultants, is the great strides 
made by colleges in responding 
to industry's training needs. 
With numbers of school-leaveis 
dipping because of demographic 
trends, the colleges axe set to 
have even more capacity to lay 
on MSC and off -the- job courses. 

Another reason is the growth 
of private-sector group training 
associations and training consor- 
tia, coupled with the increas- 
ingly active role in taming of 
Chambers of commerce and indi- 
vidual employ ere such as Austin 
Rover. 

Yet there is real doubt whether 
either the colleges or the private 


ble there are areas where the 
private sector can take over, but 
there are other areas that must 
be examined very carefully if we 
are not to throw the baby out 
with the bathwater,” says Mr 
Kelvin Hard, human resources 
consultant with Coopers & 
Lybrand Associates. 

However, there is also a strong 
opinion that the SkUlcentres 
have in recent years suffered 
badly from uncertainty about 
their future 

~'As~one observer, close to the 
STA network, puts it: "I think.it 
must be all or nothing, either a 
strong long-term endorsement or 
total closure. Any other way is 
death by a thousand cuts.* 


Eight men jailed after plots to 
evade £5m tax on ‘scrap’ gold 


BY RAYMOND HUGHES* LAW COURTS CORRESPONDENT 


EIGHT MEN who took pare In 
what a judge described as 'auda- 
dous conspiracies' to evade 55m 
in VAT were yesterday riven jail 
sentences ranging from 18 
months to seven years. 

The conspiracies involved 
smuggling 530m of Swiss gold 
into the UK using a network of 
largely fictitious companies and 
sheafs of bogus invoices to 
enable the conspirators to pocket 
the VAT when they melted 
dovfa the gold and sold it to 
unsuspecting dealers on the Lon- 
don market. 

The gong was caught after sus- 
picions aroused by the amount 
of scrap gold appearing on. the 
London market led Customs anH 
Excise officers to mount an 
r estimation, codenamed “Oper- 
ation Fiddler." 

Judge Marcus An wyl-Davies 


said at Southwark Crown Court 
yesterday that there had been 
massive conspiracies and frauds. 

Once again the fair names of 
Innocent traders in gold had 
been besmirched, he said. The 
trust of reputable traders who 
relied on the most simple paper- 
work had been cruelly expktfted. 

Kelth Squire, a precious metal 
dealer said by the judge to have 
been a prime mover in the con- 
spiracy, was sentenced to a total 
of seven years and disqualified 
from being a company director 
for 10. .years. The judge also 
made a crinmukl - imnlcraptcy 
order against him: ■ ’ 

‘ Miiihaet Moran, said to "have 
been another prime mover, 
received a total of five years and 
also was disqualified from being 
a company director for 10 years. 

Philip Rock, a precious metal 


dealer described fay the judge as 
a "willing, lieutenant , " was sen- 
tenced to three years. 

Paul Moscow,- a jeweller, 
.received a total of three years’ 
imprisonment and was disqualif- 
ied from being a company direc- 
tor for five years. 

Mitchell Hartney, unemployed, 
was sentenced to two years in 
jaiL 

Martin Carroll, a bullion com- 
pany director, received three 
years’ imprisonment and was 
disqualified from being a com- 
pany director for three, years. 

Philip; AjUen, . a Hatton Garden 
dealer -described by. the judge as. 
'"a professional confidence trick- 
ster/'was sentenced to a total of 
five and a half years. Including 
activation of a suspended sen- 
tence. 

David Malldel, an estate agent,, 
received an 18-month sentence. 


Prince gives donations advice 


BY MCNAEL SKAPMKER 

COMPANIES seeking to become 
involved in community projects 
must win the active co-operation 
of all interested parties, includ- 
ing voluntary organisations, 
local councils and trade unions, 
the Prince of Wales told a meet- 
ing of leading Industrialists last 


night. 

“Local 


people need a stake In 
the ownership of the scheme,* he 
said. "Company patronage or 
rifts and legacies, no matter how 
neroto, from outsiders will not 
to the desired benefits if the 
community has not been actively 
involved, not only in a consulta- 
tive manner, but as a partici- 
pant.' 

The Prince was speaking at the 
first annual meeting of the Per 
Cent Club, set up last December 


to encourage companies to 
become more actively involved 
in community projects. 

Members of the dub undertake 
to give half a per cent of their 
pre-tax UK profits to the 'com- 
munity, either through c 
tions or through participation in 
job-creation initiatives, educa- 
tion or innerdty regeneration 

The club has attracted nearly 
110 members so far. They have 
given about 584m to community 
wmwy this year. 

Prince Charles, while cat&lo-- 
guing an impressive list of com- 
munity projects in which compa- 
nies are involved, said the 
amount given to charity by the 
business sector remained rela- 
tively low. Charitable donations 
by the top 200 CTK companies in 


1986, he said, were equivalent to 
02 per cent of their pretax prof- 
its. - 

He said that the Per Cent Chib 
was not designed to enter -*the 
traditional province of the state, 1 
dona- church or charity- It is bringing, 
however, a new approach of 
enterprise to their traditional 
areas of interest" 

Nor were its members making 
an ideological or political state- 
nfent “Clearly, ' support for the 
Government's new City Technol- 
ogy Colleges by some members 
of the Per Cent Club can be con- 
strued by some as a political ges- 
ture.. Whether that is true or not, 
it does represent a" major finan- 
cial commitment to education 
and training in particular areas 
of need.” 


Actuaries urged 
to give more 
details of funds 

By Erie Short, Pmaiom 


ACTUARIES IN conventional life 
anies should be required to 
provide more detail about the 
resources of their traditional 
with-profits funds, a senior actu- 
ary said last night. 

Mr Stewart Lyon said that the 
ted actuary of a company 
have a statutory duty to 
that the proposed bonus 
distribution would, in his opin- 
ion, be consistent with the rea- 
sonable expectations of all inves- 
tors holding with-proflt 
contracts. 

Mr Lyon, a former president of 
the Institute of Actuaries, was 
addressing Scottish actuaries 
He said two main factors ware 
pressure on actuaries to 
greater disclosure. The 

advice requirements of the 

financial services legislation 
imposed considerable responsi- 
bilities oh financial intermedi- 
aries in their recommendations 
Also the financial problems of 
United Kingdom Provident Insti- 
tution had shown intermediaries 
that they could not take for 
granted the financial security of 
a conventional life company. 

Mr Lyon warned of the dan- 
gers of *a bonus war." There 
were signs that those life compa- 
nies which were finding their 
marketing position threatened 
fay. the application of best advice 
would fight by increasing then* 
bonus rates beyond levels consid- 
ered desirable. 


Call to expand role of 
pharmacists to aid NHS 

BY ALAN PIKE, SOCIAL AFFAIRS CORRESPONDENT . 


lego-, 


PROPOSALS TO expand the role 
of chemists’ shops as the "front 
door of Che National Health Ser- 
vice" were put forward fay the 
Pharmaceutical .Services N< 
dating Committee yestt 

A formal round-the-clock dis- 
pensing service enabling all 
patients to go to a pharmacist 24 
hours, a day, are among the 
recommendations from the com- 
mittee, which represents the 
10,500 NHS community phar- 
macy contractors in England and 
Wales. 

An expanded role for pharma- 
cists, ssye the association, would 
enable general practitioners to 
spend more time with patients 
and cany out minor surgery, so 
reducing pressure on hospitals. 

'In cost terms a visit to hospi- 
tal costs £60 a patient, a trip to 

the doctor' costs £5 - to obtain 
the advice of your pharmacist 


costs the NHS nothing," says the 
association in a Patients' Char- 
ter, in which it sets out its pro- 


The association proposes that 
— should develop coun- 
, areas where pharmacists 
be able to give mure confi- 
dential advice than is possible at 
present. Among the specific 
areas where It believes pharma- 
cists can expand their services to 
the public are 

• Preventive medicine and tests 
related to factors such as weight, 
blood pressure and cholesterol 
level 


* Work among particular 
with special needs, Ind ' 
young 


the 


Home visits to the housebound 
• The maintenance of medica- 
ition records.' 


Direct sales code agreed 

BY DAVID CHURCHILL 

BRITAIN'S direct selling Indus? 
try is seeking to improve stan- 
dards and gi™ greater protection 
to consumers under a code of 
practice announced yesterday . 

The Direct Selling Association, 
whose members are responsible 
for 90 per emit of all direct sales 
in the UK, has agreed a- volun- 
tary code of practice with the 
Office of Fair Trading. 

This gives consumers more 


time to withdraw irora agree- 
ments, an improved complaints 
procedure, and tougher curbs on 
companies caught breaking Che 
code. 

Direct sales of consumer goods 
- mainly through door-to-doot 
selling and parties in peoples' 
homes - rose by 19 per cent last 
year and involved .more than 
70m transactions. About 300,000 
people work in direct selling 


Financial 

computer 

launched 

By David Thomas 

APRICOT,’ the Birmingham- 
based computer company, yes- 
terday launched a computer sys- 
tem for the financial sector 
called Citydesk. 

The system is aimed at bro- 
kers, analysts, dealers, accoun- 
tants and other staff in the 
"front office" operations of 
financial institutions. 

This is' the first time Apricot 
has sold to this particular mar- 
ket, though the company has a 
successful portfolio and unit 
trust- management software 
package calleaQuasar. 

■ Mr Roger Foster, -Apricot chief 
executive, claimed Citydesk was ' 
well ahead of - its rivals, which 
include IBM, in integrating infor- 
mation access, communications 
management and personal com- 
puting in one work-station. 

He said the price of Citydesk 
was very aggressive and argued 
that the stock-market crash* 
would make financial institu- 
tions more cost-conscious when 
investing in information technol- 
ogy. 

.Mr Foster said the system 
could support a network ranging 


from as few as eight screens up 
to several hundred, but he 
expected the typical network to 
consist of 30 to 60 screens. 

■The Citydesk system, which 
Apricot is testing with several 
large institutions and will start 
shipping to customers from 
March 1988, can: 

• accept data from all major 
financial information sources 
and distribute it- to any number 
of people on the system. 

• communicate with other 
mainframe, minicomputer or 
microcomputer systems and pro- 
vide a central information store 
and distribution facility. 

• act as a telephone manage- 
ment facility and communicate 
with "back office" systems. 

• offer a fault tolerance capabil- 
ity and provide conventional 
personal computer functions. 

Bankruptcies 
increase by 
5 per cent 

Richard Waters 

THE NUMBER of bankruptcies 
last year rose 6per cent to 6,700, 
according to figures published 
yesterday by the Department of 
Trade and Industry. 

The average deficiency of the 
bankrupts was 554,600, up 
51,000 from the previous year. 

The largest bankruptcy order 
of the year was made against Mr 
Arjan Singh Anand, who had 
gross liabilities of 585m. 

His debts, in connection with 
personal guarantees for his com- 
panies, were exceeded fay the 
aggregate debts of the Sethia 
JhfaS'fly- Mr India Kumar Sethia 



(£i2.4xa) were among the eevr 
people during the year wl 
faced court orders of more tbj 

55 m. 

Bankruptcy General Ann** 

ww5!d%,. ,h ’ VBar 19s 

Delfont retires 

LORD DELFONT is to retire * 
chairman of First Leisure Carp 
ration in March, when he will t 
succeeded by the chairman de 
ignate, Mr M.N.F. CottreU. 

Lord Delfont will become pre 
ident of the company an 
remain on the board. 


v 


-v 



13 


Financial Times Tuesday November 17 1987 


;;,u# 

• ' . U- 

r» 


Dan-Air apply 
for BCal routes 

BY JAMES BUXTON AND MCHftEL DOME . 


EC market 
‘needs 


*J -'a,. 
\‘l '-V 


TWO INDEPENDENT airline* 
axe applying to the -Ova Avia- 
tion Authority for licences to 
take over some of BrittahCaledb- 
man's domestic routes. - 

Loganair, the GlasgOw-baaed 
airline* is to seek licences to 
replace BCal on- ita : routes from 
Gatwick to Edinburgh and to 

Glasgow. 

Dan-Air, one of. Britain's lead- 
ing independent airlines,' has 
applied to the CAA for rights to 
take over the routes, between 
Gatwick and Manchester and 
between Winchester and Aber- 
deen. Hie airline already 


don and Scotland. .• > 

Mr Bishop sud Loganair would 
operate the routes with two 
McDonnell Douglas DCS jets 
which would be transferred from 
British Midland and would offer 
the same number of services as 
BCSL Its karat aircraft atjjres- 
ent are turboprop Fdkker F27 
.Friendships . • . 

■. The Gatwick Sendees would be- 
administered: from Glasgow, he 
said. If Loganair gained the 
Ucencea. it would increase its 

staff from 360 to about 450. 

Iff Bishop said the. application 
would marie a- further devel 



Vm 






Lx. 


553 




)uter 

ehed 


Arts Council to alter 
funding for orchestras 


BY ANTONY THORNCROfT 

THE ARTS Council is to change 
the way it funds the four main 
London orchestras -the London 
Symphony, the Royal Philhar- 
monic, the London P hilhar monic 
and the Philharmonia. Fromthe 
start of the 1989-00 season the 
orchestras will be given a fixed 
sum per concert. 

Until now the orchestras have 
received a grant, on average 
around £3O0,0G0'each year, froth 
the Arts Council. The overall 
expenditure will remain the 
same, but it will be concentrated 
on 130 subsidised' concerts; s tall 
of about 40 concerts , a .season/ 
Each orchestra, will ‘receive thje 
same amount per concert,' 

In effect a hew tope of conceit, 
part financed by the Arts Coun- 
cil, will appear at the South 
Bank concert halls and. at the 
Barbican. Its repertoire will be 
more imaginative and -will 
involve the orchestras in -extra 
rehearsals, preferably in the hall 
that the concert will . be per- 
formed. Other, unsubshfised con-, 
certs by the orchestras will prob- 
ably consist of more popular 
works. 

At the end of each season, the 
Arts Council will assess the 
orchestras and decide how many 


aided concerts it will offer each 
in the next year. The Arts Coun- 
cil's plans to concentrate its 
resources on just one super 
orchestra, or to force one of the 
London orchestras to go to East 
Anglia to become a regional 
orch estra , have come to nothing. 
Tlie four. .London orchestras 
depend on the Arts Council for 
about 14 pa cent of their reve- 
nue and can resist its pressure. 

Last week Arts Council mem- 
bers met near Stratford-upon- 
Avon to rfwiwtM the announce- 
ment from. Mr -Richard Luce, 
Minister for the. Arts, that hb was 
pfenning to Increase tRe budget 
for the' performing arts-by 17 pe^ 
cent -doiiing the next three years 
and to introduce an dement of 
incentive funding. 

. The Arts Council is drawing 
up incentive, funding proposals, 
wich will spKt into two sections, 
one for the larger national com- 
panies where extra cash will be 
related tn their ability to attract 
funding from business and other 
external sources, and one for 
smaller, less : commercial enter- 
prises where additional revenue 
will be geared towards the prog- 
ress they make towards more 
efficient management. 


xmTFuTrrr 


standards’ 

By iBchad aimpinker 

LEARNING foreign lan- 
guages Is less Important for 
British businessmen than 
being able to operate In a 
European market with com- 
mon standards for goods 
and services. Lord Young, 
the Trade and Industry Sec- 
retary, told a conference of 
the British Institute of Man- 
agement in London fester- 

Asked by a member of Ms 
audience what the Govern- 
ment was doing to prepare 
British bnslneas for the 
advent of a single European 
market in 1992, Lord Young 
•aid: Tm not so more it’s 
language that's important. 


More UK news on Page IT 


. because English Is becoming , 
more and more the commer- 
cial language for most of 
Europe.' 

"Language font so impor- 
tant as long as we actually 
have goods and services. I 
vrill know we have a single 
market when I can buy a 
television set in London, go 
to- Paris, plug It in, torn it 
on and receive a picture." 

He said the creation of 
common standards of this 
sort was more important 
than, the standardisation of 
tax rates pro p osed by Lord 
Cockfleld, vtce-presidesas of 
the European Commission. 
He described Lord Cock- 
field's proposal as "non- 
sense" because It did not 
affect goods and services. 

He told his audience the 
single market was going to 
happen and it would have a 
great influence on their 


He said he had brought 
together a number of fig- 
ures from commerce and 
. Industry to talk about bow 
best to prepare the UK for 
As single market. The issue 
is to be discussed at a con- 
ference . in AprfL 

Lord Young congratulated 
British companies on the 
way they had responded to 
his mil eaiMar in the year 
for a crusade to. improve 
the- quality of management 
education. He said that 
although the matter was 
primarily a matter for 
industry, Us department 
would participate In the 
drive to improve manage- 
ment education and "give 
modest financial support.* 
oSome of the Go v ernment's 
planned evocation .reforms 
are not Bp to the.mark, dne 
of its own MPs warned ye* 
terdmy. • 

Mr Andrew Rowe, a back- 
bencher on. the “wet" side 
of the Tory Party, delivered 
Us criticism in a pamphlet 
examining the radical mea- 
sures proposed -by Mr Ken- 
neth Baker, the Education 
Secretary, and due to be 
outlined in a MU on Friday. 

' Mr Rdwe, MP for Mid- 
Kent and governor of a far- 
ther education college, said 
he was unhappy with the 
plan to allow schools to opt 
:omt of local education 
authority . control 


UK NEWS 


Electricity sell-off ‘should High incidence of 
start with distribution boards 9 child leukaemia in 

BY IIMmCE SANUELSON tlU^ 010^ WCQRS 


A LEADING economist yesterday 
suggested that privatisation of 
Britain's electricity industry 
should begin with sale of the 
area distribution boards, and 
that the power stations should 
be kept in the public sector until 
after the next general election. 

Mr Christopher Johnson, chief 
economic adviser of Lloyds 
Bank, said the industry should 
not be sold as a giant corpora- 
tion. Nuclear plants should 
remain publicly-owned and the 
National Grid should be sepa- 
rated from the generating 
authority. 

He also attacked the govern- 
ment proposal to raise electricity 
prices by 15 per' cent over the 
next two years and linked the 
sale of conventional power sta- 
tions with privatisation of the 
coal industry. 

Mr Johnson was speaking at a 
Financial Times conference in 
London attended by electricity 
officials, financiers and econo- 
mists freon 20 countries. 

The decision to raise prices by 
15 per cent over the next two 
years, Mr Johnson said, "is rob- 
bing Peter to pay Paul; the Gov- 
ernment is taxing the electricity 
consumer to increase its own pri- 
vatisation proceeds. 

"The argument that higher 
prices are needed to finance new 
power stations does not stand 
up, since the Central Electricity 
Generating Board will soon have 
repaid the whole of its debt, and 
could well borrow to finance 
new ventures, whether it was In 
public or In private hands." 

Mr Johnson, who is also honor- 
ary professor of economics at 



the state out of electricity was 
"acceptable on' broad grounds of 
economic principle." 

He favoured selling each of the 
12 area boards in England and 
Wales separately, similar -to the 
proposed procedure in the water 
industry. 

The boards were potentially 
competitive with each other 
because the most profitable one 


CONFERENCE 

WORLD 

ELECTRICITY 


made only three times as much 
profit as the least There was a 
sufficiently narrow range of 
variance In return on assets to 
make them broadly comparable 
with each other. 

Once a market price was estab- 
lished for one board, the others 
could be sold at a relatively 
small discount off a price based 
on the same price to earnings 
ratio. 

The Government would have 
considerable flexibility in decid- 
ing when to bring forward each 
board, thus avoiding bottlenecks 
in Stock Exchange paperwork. 

The boards would need to be 
regulated, since each would have 
a monopoly in its area. They 
could compete at the boundaries 
and would continue to compete 
to some extent against other 
fuels. The regulatory authority 
would also have, the t»glr of pub- 
lic comparison of performance of 
the boards so that they would 
have to compete 

The structure of the generat- 
ing industry was the most diffi- 
cult part of the whole exercise, 
Mr Johnson said. "The fact that 
the CEGB is campaigning so 
hard to remain one entity and to 
retain control of the National 
Grid should be enough to make 
believers in competition suspi- 
cious of any such solution." 

The present system worked 
well enough but ‘foreign experi- 
ence shows that this is not the 
only way to run an efficient sys- 
tem.* 


The first obvious move was to 
make the grid into a separate 
corporation, he said. It would be 
a natural monopoly, regulated in 
such a way as to be obliged to 
transmit electricity between the 
seller in the generating industry 
and the buyer in the distribution 
industry. There seemed to be no 
reason why it should not be pri- 
vatised, subject to proper regula- , 
tion. 

The next move was to separate 
the nuclear power industry keep- 
ing it under state control for the 
time being. The costs of fuel 
reprocessing, waste storage, and 
decommissioning old plants had 
become a millstone around the 
nuclear industry's neck. 

After subtracting the CEGB's 
nuclear stations ana the grid, the 
CEGB was left with 37 coal fired, 
four mixed fuel and 20 other, 
smaller, stations. They could be 
sold as one large corporation, 
competing with the state nuclear 
power corporation, or as a num- 
ber of regional utilities. 

Mr Johnson said they could be 
merged with area boards Into 
vertically Integrated generation 


and distribution corporations, 
but the best way of introducing 
competitor! would be to split up 
the conventional generating side 
of the CEGB into a number of 
units, on a regional basis, and 
possibly also by fueL However, 
the Government would first have 
to establish the right of power 
stations to Import cheap foreign 
coal, or at least allow British 
Coal to match foreign prices. 

On the timing or privatisation, 
Mr Johnson said the 12 area, 
boards could be sold at the rate 
of four a year over a three-year 
period. During this time, the 
state nuclear power corporation 
would be set up as an entity 
separate from the CEGB, as 
would the national grid. 

Privatisation of conventional 
power stations would have to be 
held over until after an election 
in 1991 or 1992. "By that time 
the coal industry itself would be 
ripe for privatisation.” 


BY RICHARD EVANS 

THREE NEW areas with a high 
incidence of child leukaemia 
have been discovered in the 
north of England. 

Granada Television’s World 
in Action programme last 
night claimed that the new 
evidence showed that the clus- 
ters - at Tyneside, Teesside and 
Whitehaven, Cumbria - could 
not have occurred by chance. 
The programme also renewed 
the controversy over links 
between nuclear installations 
and child leukaemia. 

The Tyneside cluster, the 
largest of the three, could not 
have been caused by radiation. 
There are no known sources of 
radiation nearby, although the 
duster contains the same type 
of child leukaemia as the one 
near the nuclear reprocessing 
plant at Sellafield, Cumbria. 

The concentrations were 
uncovered by a team from 
Newcastle University. The 
team used one of the country's 
most powerful computers, 
which was able to spot the dif- 
ference between leukaemias 
grouped together by chance 
and genuine dusters of cases 


with common causes- It ana- 
lysed all child leukaemias 
which occurred in northern 
England between 1968 and 
1985. 

Dr Alan Craft, one of the 
team's leaders, said: "The 
results really are very dramatic 
indeed. They point us in a new 
direction to look for causes of 
child leukaemia." 

Dr Stan Openshaw, the other 
team leader, said the team did 
not rule out radiation as a 
cause of some childhood leu- 
kaemias. 

However, previous research- 
ers had thought that leukae- 
mia was only caused by radia- 
tion, so they had onfy been 
looking for clusters around 
known radiation sources such 
as nuclear installations. In con- 
trast, the Newcastle team had 
adopted a much more general 
approach. Dr Openshaw said. 

Children living in some parts 
of the Tyneside cluster may be 
more than 10 times more likely 
to contract leukaemia than the 
national 'average. Local health 
officials are setting up a team 
of national experts to try to 
discover the cause. 


Car output falls sharply 


BY JOHN GRIFFITHS 

CAR PRODUCTION fell sharply 
last month from the high levels 
of the previous two months, 
according to Department of 
Trade and Industry provisional 
figures. Seasonally-adjusted out- 
put of 92,000 cars last month 
compared with 110,000 in August 
and 105,000 in July. 

However, taking the latest six- 
month period as a whole, pro- 
duction was 11 per cent higher 
than in the previous six-month 
period and 16 per cent higher 
than for the corresponding six 
months a year ago. 


The statistics were not influ- 
enced by the disputes which 
recently nit Ford, Vauxhall and 
Austin Rover but the DTI was 
not available yesterday to com- 
ment on the precise reasons for 
the downturn. 

Commercial vehicle production 
last month, at 19,600 units, was 
also down compared with the 
immediately preceding months. 
However, it was still 5 per cent 
higher for the past six months as 
a whole, compared with both the 
preceding six months and the 
corresponding period last year. 


DD SOMETHING SOLID TO 
l PORTFOLIO. INVEST IN T 
NEW GOLD BRITANNIA. 



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It is guaranteed by the British 
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It is available from all banks and 
brokers. 

And there are three other 


coins, which contain half an ounce 
(15.55 grms), a quarter of an ounce 
(Z78grms), and one tenth of an ounce 
(3.IIgrms) of gold. 

Their price, of course, is deter- 
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Which, in the long term, has 
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The new Britannia from The 
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] For details of Britannia coins and where to obtain them, 1 
| complete this coupon and send to: Bricainnia Section, Royal | 
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j NAME I 

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i 














14 



The shock waves that so dramatically 
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Why gold? Because gold is a pre- 
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NF11 




L 




I--*** .- •■.i“." : ■*-<■».' -V- ' ‘ --. - . V 


FSnan^ l^mia Toaday November 17 1987 


FT LAW REPORTS 


Default clause is not a penalty 


THE ANGELIC STAR ' 

Court of. Appeal (Sir John Don-. 
aWson, Master of the Rolls): Lord 
Justice Neill and Lord Justice 
Gibson): November 11 1987 
A LOAN condition, is not -a 
penalty clause to be disre- 
garded by the court if, prop- 
erty construed, it provides for 
instant repayment -of capital 
on the borrower’s failure to 
repay by Instalmenu^and for 
payment; not Of ftttnze inter- 
est but of interest dne at dace 
of default. 

The Court of Appeal so held 
when dismissing ari ' appeal by 
defendant, Mr Marcos- Dlainentis 
Lemos, from Mr Justice Gate- 
house’s d ecis i o n giving summary 
judgment against him as guaran- 
tor of a loan for purchase of a 
ship built, sold and delivered by 
plaintiff shipbuilders, Oresunds- 
varvat Aktiebolag. 

SIR JOHN DONALDSON MR said 
that by a written contract dated 
March 1 1983b Swedish shipbuild- 
ers agreed to build a bulk carrier, 
the Angelic Star, and to sell ana 
deliver her to the purchaser, 
Agglikos Astir Corporation. 

The price was $24 .7m of which 
20 per cent was payable oh or 
before delivery. The remaining 
$19.7m was payable. on delivery 
or, at purchaser’s option, by a 
delivery credit. The purchaser 
exercised the option. 

Under the option the delivery 
credit was to be repaid over 
eight years by 16 semi-annual 
instalments. The credit bore a 


fixed rate of interest of 8b per 
cent per anrulm payable semi-an- 
nually in advance of the loan. 


shipbuilders, . 
repayment of capital and 25 for 
declining payments of interest. 

The ship was to be:m o rtgafled 
by way of security. . Also* Mr 
Lends was to. guarantee the last 
■six bills of exchange .relating to 

to hottest* ^ ^ five. relating 

Clause 13 cif the loan condi- 
tions in the shipbuilding con- 
tract provided that In the event 
of; default: The loan, together 

with all other monies due— shall 
immediately become payable and 
the lenders shall forthwith be 
put in ftmds to cover all existing 
and future liability under any 

outstanding tills drawn In con- 
nection with' the loan, and the 
security.. .shall become enforce- 
able" if the purchaser failed to. 
pay capital or interest on due 

dates. 

The bills exchanged- were duly' 
drawn by the shipbuilders., 
accepted by the purchaser, and. 
endorsed, with: recourse, by Mr 
Lemos. who also executed the 
guarantee. 

. There wa& late payment and 
default on the first of the 


lb of exchange for capital arid 
interest payable on April . 23 
1976, and total default in respect 
of ail other bObof exchange. - 
The vessel was arrested and 
sold, and the net proceeds were 


paid to the shipbuilders, 

Mr Justice .Gatehouse gave 
judgment against Mr Lemos 
under RSC Order .14. -for 
$1,783,744, which included inter- 
est on $940,151 at 9-6 per cent, 
said to have become due under 
loan condition 13. less late par- 
tial payments and receipts from 
sale or the vessel 
Although it was not a consent- 
judgment, argument was con- 
fined to die appropriate rale of 
interest. Mr Lemos now wished 
to; dispute liability for the princi- 
pal sums by raising a point nei- 
ther pleaded nor argued before 
•Mr Justice Gatehouse. 

The argument, depended on 
the proposition that clause IS" of 
the loan conditions was a pen- 
alty clause and should be disre- 
garded. It was said that the 
danse purported to capital 

-and eight years interest payable 
as soon as there was any default. 
That was not accepted 
A. clause which provided that 
'. in the event of breach a long 
term loa,n would immediately 
become repayable, and that 
Interest -for the full term, would 
be payable at once, would consti-. 
Cute a penalty. . 

But condition 13' did not read' 
in that way. 

"The loan" was the capital 
sum. "All other monies due" 
could not be construed as "all 
other monies which would other- 
wise become due in the ftiture". 
It meant "hU other -monies , due at 
the time of default". 


The mere fact that the capital 
sum became immediately repay- 
able on a failure to comply with 
the conditions on which credit 
was extended, could not consti- 
tute a penalty. 

The provision that the lenders 
should be put In funds to cover 
all existing and future liability 
under outstanding hi Hr, was 
intended to safeguard the ship- 
builders against potential liabil- 
ity as drawers, should the bills 
be negotiated mid the purchaser, 
as acceptor, fall to honour them 
on maturity. 

That again was not a penalty 
provision. • 

Liability on April 23 1976 was 
to repay the full sum lent The 
measure of damages for failure 
to do so was the capital sum 
together with any other sums 
due at moment of breach leas 
subsequent receipts, with inter- 
est on the resulting amount. 

The appeal should be dis- 
missed. • 

LORD JUSTICE NEILL agreeing, 
said there was no rule that pre- 
vented a lender from stipulating 
that on failure to pay an instal- 
ment on due date the whole loan 
became due and repayable forth- 
with. 

. , The opening words in clause 
18, "the loan together with all 
other monies due...” imposed on 
the purchaser the obligation to 
pay the outstanding amount of 
the loan together with any out- 
standing interest due. 


That could not be regarded as 
a penalty provision. 

The succeeding words, “and 
the lenders shall forthwith be 
put in funds...", were designed to 
protect the shipbuilders against 
potential liability as drawers of 
the bills in the event that they 
were negotiated and were not 
paid by the purchaser on matu- 
rity. 

The purchaser was being 
required to pay no more than the 
outstanding balance of the loan, 
interest on that balance, and 
compensation for any liability 
which the shipbuilders might 
incur as drawers of the bills. 
LORD JUSTICE GIBSON, also 
agreeing, said that the doctrine 
relating to penalties was not a 
rule of illegality. It was a rule by 
which the court, for public pol- 
icy purposes, refused to sanction 
leg8i proceedings for recovery of 
a penalty. 

The. rule was not designed to 
strike down any more of a lawful 
contract than was necessary to 
apply public policy, (t should 
interfere as little as possible with 
proper enforcement of a lawful 
contract 

For Mr Lemos: E.C. Evans* 
Lombe QC and Jonathan Croto 
(Elborne Mitchell & Co). 

For the Shipbuilders: Catharine 
Oxton-Gouidsr (Norton-Rose 
Bouerell Roche). 

By Rachel Davies 

Barrister 


COMMERCIAL PAPER \ V 

The Financial Times proposes to publish this survey 
on: 

THURSDAY 10TH DECEMBER 1987 
Amongst the subjects covered will be: 

★ US Commercial Paper . 

Asset-Backed Commercial Paper 
The Eurocommercial Paper Market 
The Euronote Market 
Medium-Term Notes 
Clearing Systems 
Sterling Commercial Paper 
Other Domestic Commercial Paper Markets 

For a full editorial synopsis and for any further 
details concerning advertising, please, contact: 

David Reed 

. Financial Times Ltd - - 
Bracken House 
- 10 Cannon Street - 
. London EC4P 4BY 
Tel: 01-248 8000 Ex 3461 ' • 

. .. Telex: 385033 

" FINANCIAL TIMES 

EUROPE'S BUSINESS NEWSPAPER 


SELL 

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Publication date November 20 1987 
Advertisement copy date November 6 1987 

The Financial Times proposes to publish this survey on the 
above dale. 

A number of areas will be covered including; 

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Editorial Information 

Information on advertising can be obtained from Claire 
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FINANCIAL TIMES 

EUROPE'S BUSINESS NEWSPAPER 


PETROCORP OVERSEAS FINANCE LIMITED 

I> w i mh > ic oi | » i— fc rt wn — m e m tmmmanmCnr mumrm 

E£U7SJKNU)00 9% Guaranteed Bondt Dm 1993 

NOTICE OF MEETING 
el the hofctes of the Urn* wntf onad Bonds 

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roatktrndwts 

WK3PALPAYBIO AGBfT 


QWEHPlKWNGAGaira 


cNV. 

bear . 

London EC2VSDE. 


INe NoOco Is givan by 
P etro te um Corporation 
of New Zeafana Unttetf 


8? 


Thelaunchofa 

Pensions Management Company 
as celebrated and explained 
by a couple of grapes. 

Qiampagne owes its devated status to two varieties of 
grape, Chardannay and Pinot Nche Both are unquestion- 
ably superior grapes. Blend them, and ooe has a drink 
worthy of any celebration. 

Comctdenta% theres a new company that owes its 
Heritage to the pension fund departments of two companies. 
fiamlragt< in Tnverfment Management and Throgmmion Investment 
Mana@»tnenL Both have unquestionably been extremely successful 
(consistently top quartile). 

Tbgjether IhQr are Hamlington Bsnsions Management 

The new company has been formed to capitalise cm fee complementary- 

strengths of these departments. Throgmorton specialised in identifying 
portfofos of smaller companies in &e UK only While fiamlingtoD specialised 
in general fund management with a bias toward smaller international 
companies. The areas erf expertise may diffe? the philosophies however are 
perfectly suited. 

F famlmgfo p Managemen t adheres to wbat can best be 

described as the “principle of undiscovered value.” Wfe devote our energies 
to identifying those owerioolopd and undervalued companies that we believe 

wifl shew the greatest growth in earnings per share, inarket rating and 

therefore price. 

So while some people regard a couple of grapes 
as just a coupled grapes, we see champagne. 

Rjt mem information either call Raul Loach 
or Richard Lanyon on (01) 374 4100, or write to Royal 
London House, 22-25 Finsbury Square, London EC2A IDS- 


/< nsions Mtniauvmoi. 


4 .. 




26 



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Financial Times Tuesday November 17 1987 


APPOINTMENTS 


Changes at British Alcan 


The enterprises divirion of BRIT- 
ISH ALCAN ALUMINIUM has 
appointed Mr Steve Williams 
as planning and financial dtrec- 


managfng director of British 
Alcan Extrusions; he was a direc- 
tor. Mr P-J. Edwards is made 
managing director of Baco Con- 
tracts; he was general manager. 
Mr Alan J. west haa been 
appointed Cambridge Glasshouse 
Co; he was at head office. 

* 

Mr Kit Brownlees is joining 
INVESTMENT INSURANCE 
INTERNATIONAL (MANAGERS) 
as managing director from the 
beginning of December. Mr 
Johan Sadcliffe becomes chair- 
man. For the last four years Mr 
Brownlees has been running the 
political risk business of Stewart 
Wrightson, and before that was 
with Hogg Robinson & Gardner 


Westminster Press’s division at 
BaaUdon, has been appointed 
managing director of Bradford ft 
District Newspapers. He succeeds 
Mr Ken Piper, who is retiring 
Westminster Press divisions, at 
Bath and Trowbridge are to be 
managed together following the 
retirement of Mr David Edgley, 

who has been managing director 
of Wessex Newspapers at Bath 
for 15 years. Mr Phil Harris, 
managing director of B, Lans- 
down A Sons at Trowbridge, will 
assume responsibility for both 
divisions from December 1. 

* 

Professor John Fyfe has joined 
the boards of W S ATKINS MAN- 
AGEMENT CONSULTANTS and 
W S Atkins Planning Consul- 
tants. He was the Government's 
overseas manpower and employ- 
ment advisor. 

w 

Mr Alan Joynes has been 


HIGGS AND HILLBUUILDING. 

* 

Mr Tom De Wilde and Mr Rod- 
ney Timson have been 
appointed main board directors 
of TOM SMITH GROUP, Nor- 
wich, Christmas cracker and 
party product maker. 


manager. 




Mr Barrie Turner has been 
appointed chairman of SEDG- 
WICK UK's Midland region. 


Mountain, of which his new 
company is a wholly-owned sub- 
sidiary. 

■ * 


appointed to the board of ECO- 
NOMIC FORESTRY GROUP. He 


Mr Jim BanvUle, managing 
director of Echo Newspapers, 


NO MIC FORESTRY GROUP. He 
joined the group in 1972, and is 
managing director of Worlds End 
Garden Centre, Wendover. 

★ - 

Mr Alistair 6- Littlejohn has 
been appointed a director of 


BEMROSE CORPORATION has 
appointed Mr Peter BrewLn. as 
chief operating director of Bern- 
rose uk, Derby;' Mr Graham 
Bennington as managing direc- 
tor or Bemrose Security Printing; 
and Mr David Oakes as manag- 
ing director of Bemrose Calen- 
dars & Diaries. 

+ 

BET has appointed Mir Bill Han- 
cock as managing director of 
Anglian Windows; and Mr Alan. 
Keizer as commercial director of 
a new division covering all BETs 
home improvment businesses. 


PETER PAN PLAYTHINGS has * 
appointed Mr Malcolm Cook as ' 
managing director, and Mr 
David Frear as development ■ 
director. Mr Cook joins from H. 
Schelhom & Co., where he was • •• 
sales and marketing director, 
and Mr Frear joins from Action 
Games ft Toys, where he was 
development director. Peter Pan ' • 
Playthings is a wholly.owned 
subsidiary of Bluebird Toys. 


Mr M.WJL Dobson has been 


appointed a director of ANGLO 
ft OVERSEAS TRUST. Mr J.H.L 
Norton has resigned from the 
board. 

* 

Mr David Brierley has been 
promoted from finance director 
to managing director of GABLE 
RETIREMENT HOMES - a sub- 
sidiary of Lad broke Group. 


Mr Brian Coombes has been 
appointed head of external 
affairs for MANCHESTER AIR- 


PORT. He was airport operations 


TYZACK ft PARTNERS has 
appointed Mr Neal Wyman and 
Mr Michael Edwards as part- 
ners. 


BUILDING CONTRACTS 


£15m for Turriff 


TURRIFF CONSTRUCTION 
has won contracts worth over 
£ 15m. Projects include a &2.9ra 
industrial development at Hor- 
ton wood for Telford Develop- 
ment corporation involving the 
construction of seven steel- 
framed buildings with mezza- 
nine floors together with the 
external works, drainage and 
out-buildings. 

The Prudential Assurance 
Company has awarded a £L9m 
contract to build a residential 
training centre at Hun ton Bridge 
in Hertfordshire comprising a 
two-storey bedroom block con- 
taining 45 bedrooms with en 
suite bathrooms and a basement 


High tech offices for 
Automobile Association 


and replace them with steel- 
framed glazed structures. The 
contract includes installation of : 
lighting and other finishings. 

Contracts worth a further Sam 


have been awarded by Citygrove 
Developments In Stoke-on-Trent 
and Panda Developments in 
Wigan for three retail warehouse- 
units. At Stoke-on-Trent two 
attached steel-framed units are 
being constructed. At Wigan the 
contract is for a greenhouse 
extension and twt>-storey office 
accomodation within the ware- 
house together with an access 
road and car parking facility on 
a vibro-compacted site. 


WALTER LAWRENCE PROJ- 
ECT MANAGEMENT has been 
awarded a design and build con- 
tract by Automobile Association 
Developments for a high-technol- 
ogy building at Priestley Road, 
Basingstoke, . Hampshire, at a 
cost of £4. 8m. 

The ■ scheme consists of two 
main blocks totalling 30,000 sq ft 
linked by a service spine of 3,500 
sq ft at the rear. The larger of 
the two blocks will house the 
main computer room, operations 
area, printing, and open plan 
office. Conference rooms are at 
the mezzanine leveL The second 


block will contain the secondary 
computer system, operations 
area and some additional office 
accom modotion. 


Situated about two miles north 
of the centre of Basingstoke, the 
building's roof has been designed 
as a single- span curved struc- 
ture, dad in natural aluminium. 
It has a large overhang to max- 
imise weather pro Lection and 
minimise solar heat gain. The 
building is clad with faced brick 
work and curtain wailing using 
tinted double glazed units with a 
powder coated aluminium finish. 


swimming pool and jacuzzi. 
There will also be a two-storey 
barn bedroom block containing 
15 bedrooms with en suite bath- 
rooms together with a single-sto- 
rey facilities block, with glazed 
walkway links between build- 
ings. The facade of the new 
buildings will endeavour to mir- 
ror the existing historic building 
which is due to be refurbished. 

At Watford Junction Station, 
the British Railways Board has 
awarded a Sim contract to 
demolish the. platform -buildings 


A number of modernisation 
and refurbishing contracts, total- 
ling S2_9m, have been awarded 
by local councils including: the 
City of Bradford Metropolitan 
Council, Huntingdonshire Dis- 
trict Council, Dudley ; Metropoli- 
tan Borough Council, Leeds City : 
Council and Bromsgrove District 
CounciL Meanwhile at Middles- 
borough the borough council has 
awarded a &2ro contract for the 
modernisation and alteration of 
99 houses to form 97 houses and 
four flats. 


Foaling unit at Darley Stud 


Building contracts totalling 
£4.6m have been won by three 
companies in the WILLMOTT 


Willmott Dixon Western, 
Hayes, has been awarded a con- 


Underneath the arches 


Two have been won by Bush 
Gould, Norwich. One is worth 
£lJ>m and will involve construc- 
tion of a foaling unit, a loose box 
unit and staff bungalows for the 
Darley Stud Management Com- 
pany at Newmarket. 

The other is for construction 
of a warehouse with offices at 
Woodbridge in Suffolk for Blyth 
Hasei and is worth in the region 
of 5637,000. 


tract worth £524,000 by Pearl 
Assurance for the refurbishment 
of offices at Neville House, 
Kingston upon Thames. 


- Willmott Dixon Construction,, r* 1 -. 
Shefford, is at work on a £1.7m 
contract to build a manufacture - .■» 
Ing unit and offices at the Sigma-** " 
Electronics Development in 
Letchworth, and on a £280, 000', 'll 
contract for the London Indus- 
trial Park for repairs to fire dam-*?* 
age at Boding Road, Beckton. 


The special contracts division of 
HIGGS AND HILL' BUILDING 
h assumed work on the refur- 
bishment and- extension of -50- 


'x&llway arches at Bow Triangle, 
London ECS, for the British Rail 


Property Board, to create accom- 
modation for email businesses. 
The contract worth over £2J3m. 

In addhidn- to the refurbish- 
ment of over 50,000sq ft of 
space, three industrial units pro- 
viding a further 16;000 sq ft are 
to be constructed, and extensive 
infrastructure work carried out. 

The six acre site is a disused 
railway goods yard which is 


pound which feeds the main rail- 
way lines through a network of 
cai^Ie^, passing across the site.. 
These have, to be remain live, 
throughout the . contract period 
which will require close and co- 
ordination between the site man- 
agement and B R engineers. 

The new buildings and the 
extensions to the arches are to 
be constructed on piled founda- 
tions either of load bearing brick 
and blockwork or with structural 
steel frames dad in either brick 
or steel sheeting 

Before work commenced, the 


Try builds West End block 


The TRY grdbp has. been 
awarded contracts - worth £4.3m/ 
Tty Construction has ' 52.3m con- 
tract from Bur hill Estates for the 
redevelopment of 5-9 Warwick 
Street In London's West End.' 
The existing buildings are to be 
demolished and replaced by a 


six-storey mixed development of 
some 2350 sq. met res including 


bounded on three sides by ele- 
vated railway lines on brick via- 


arches were occupied by small 
trading companies and it is 


vated railway lines on brick via- 
ducts. Within the triangle access 
roads are to be constructed, 
maintaining a transformer corn- 


some 2350 sq. metres Including 
the basement. Work has begun 
for completion In the middle of 
next year. The building will be 
of steel-frame construction with 
lightweight concrete floors, and 


dad In brickwork, with a central 

•bay to r Warwick Street dad in 

Portland stone. 

- Try Build has added two 
orders from, the Property Ser- 
vices Agency to its term con- 
tracts list, with work worth S3m . 
over three years. The contracts 
cover maintenance and refur- 
bishment In the Winchester and 
Worthy Down area, and the 
Blackdown area. The company is 
also carrying out refurbishment 
at Lords cricket ground worth 
£163,000. 


expected that the development 
will attract many new light 


will attract many new light 
industrial businesses from 
within the borough. 


Sports and leisure orders 


Travenol distribution centre 


Travenor Laboratories, churned 
to be the world's largest medi- 
care company, has appointed 
EGH Project Services to project 
manage the development of its 
15-acre, £8ra national distribu- 
tion centre at Brackmills, Nor- 
thampton. Travenol bought the 
site from the Commission for the 
New Towns, for a price in the 


starts this month. This will be 
followed by a second 55,000 sq ft 


another automated racking sys- 
tem. .. 

The warehousing complex has 


Humberside contractor, GEO 
BOULTON AND SONS, has 
won contracts •worth nearly £fira 
which have a strong sports and 
leisure bias and are nearly all 
design and build. 

Work Is underway on an ice 
rink, costing £2. 05m, for Hum- 
berside County Councils. Due for 
completion early next summer 
the rink will be one of - the big- 


Close by, on Hull City Coun-. 
cil’s refurbished Old Town 
Marina, is a £500,000 design and 
build pub, the Harbourmasters 


Tavern, for local businessman 
Mr James Moggridge and Web- 
ster* Yorkshire Brewery. 


a computerised stock control sys- 
tem, developed by Touche Ross's 
planned warehousing division. 

The- main contractor Is ILM. 
DOUGLAS CONSTRUCTION. 


region of £95,000 per acre. 

The first 140,000 sq ft phase 


gest in the country with an 
Olympic sized, 60 x 30 metres ice 
pad and seating for more than 
2,000 spectators. It is to have a 
Butler MR24 high - performance 
standing seam roof. 


In association with Lodge 
Sports, Houlton is to design and 
build two indoor bowls centres 
at Barwell, Leics, and Hull, 
extend an existing one at York 
and refurbish a fourth at Whitst- 
ahle. A further four centres are 
under negotiation. 


Mapegaz Holding S. A. 


■ '* ... 
* . 

-v * 


A new company, formed by • 
management and employees of 
Mapegaz-Remati S A. 








17 





1 block 


rders 



FmancialTimes Tuesday November 17 1987 


UK NEWS - PARLIAMENT and POLITICS 


‘Flexible’ 
poll tax 
scheme to 
be explored 

By Peter fttddal, VoWcal Edtqr 

SUQQESTIONS JbyTwy MR and 
local party activists that the 
community charge or poll tax 
should be introduced ki one go 
in England to replace domestic 
rates are running, wto Increasing 

d M cuUfa Senior ministers wflf 
meet later this week to seek a 



m 

rf w • 

row over ‘IRA 
victory’ remark 

BY WCHftB. CASSELL, POLITICAL CORRESPONDENT 


The Idea that local authorities 
should titansetaes -.be allowed to 
decide bow quickly to introduce 
the new charge has also- :beeh 
ruled out. Ministers behave this 
would take the /political initia- 
tive away from them and would 
allow Labour, local councils to 
bring bt:the plan when, they 
want and so ho able to blame the 
Government. 

Consequently, ministers are 
now exploring the possibility of 
a flexible scheme under which 
Whitehall would allow some 
local authorities to introduce Che 
charge mare quickly than others 
if they fulfilled certain criteria. 
These might cover the level of 
spending and of the charge in 
relation to citations! average. 

The snag is that this mf 

favour some authorities at 

expense of others, and so risk 
the bill being rogarded hybrid*. 
Which woOld delay its passage 

considerably. 

Broader difficulties arise 
because of the existing retfistrf- 
butive natu re of the rate support 
grant system and the proposed 
safety net. to minfxrifse transi- 
tional effects,- These arrange- 
ments would be undermined if 
some local . authorities . were 
allowed- to make the changeover 
more quickly than others. 

The hope in Whitehall fa that 
decisions can be completed in 
- foil 


time to publish the. bill early 
next month and to allow a Com- 
mons second reading before 
Christmas. 

The whole saga has involved 


the OepSrtment uf'ihe Envtam- 
meat and Mrs Thatcher wanted 
- the charge to be Introduced as 
quickly as possible, fallowing the 
precedent- of the immediate 
changeover agreed in. Scotland 
and proposed tor Wales . ; . 

Big investment 
by Japan in 
UK foreseen 

lyOvMMttnr 

THE next decade will see “enor- 
mous" Japanese investment in 
Europe; Mr -Peter Walker, the 
Welsh Secretary, forecast yester- 
■ .day -at the beriming of a five-, 
v - da jr tew^rd ' investment inggs to ri ' 
to- Japan. nfl:- r -*> vJ ? ■j.--,- 

Much of the increased invest- 
ment would be co n a tf to the 
UK, Mr Walker told an Invest fat. 

. Britain Seminar In Nagoya. 

Following the massive Invest- 
ment in the US by Juaa ewer 
the hut decade, Kr WaQaer said 
the next decade would see Japan 
make enormous investments in 
the EC- ' 

jauanese companies would, he 
said, choose the UK 'rather than 
other European countries 
"because of its large and impres- 
sive finanfitst wdor, because it 
had the fastesteomasric growth 
of all dm OECD countries, a low 
inflation » t», the. lowest labour 
costs in Western Europe and the 
highest Improvement m produc- 
tivity." . 

He claimed that chief exec* 
tuives of Japanese companies 
now in wales had been 
impressed by the way skilled 
manpower had been provided fay 


MR KEN LIVINGSTONE, the 
left-wing Labour MP and a mem- 
ber of Labour’a rnflng national 
executive committee, yesterday 
found himself embroiled £n a 
-fresh political row over his 
stance on Northern Ireland. 

. Mr Livfhgstone, the MP for 
Brent Eas^ sald on Independent 
Redid News C hat he behaved the 
ERA campaign of violence in the 
province would eventually win. 
Be added; "I do not . think any- 
. seriously believes the IRA 
not eventually get their own 
way. As with' all the other Colo- 
nial situations we have. been in, 
eventually Britain wSHgo. m 

At the w&ktotd. Hr Living- 
stone walked out of the annual 
meeting of the Labour Co-ordi- 
nating Committee, the left-wing 
pressure group, at which he was 
accused -of “having blood on ids 
hands' because of his previous 
contacts with Sinn Fein. - 

The committee, which- earlier 
this year helped get Mr 

tone elected to Labour's 

last week voted him off fas own 
executive. . . 

The former Greater London 
Council leader’s latest remarks, 
a few days, after Mr. Neil 
the Labour leader, had 
visited Dublin and condemned 
Sinn Fein's “bullet and ballot 
box" policy, have infuriated the 
party leadership. They threaten 
to further isolate Mr Livingstone 
from most of his NBC colleagues 
and to undermine support for 
him within elements of the 
party’s left wing . . 

A terse statement issued last 
night by Labour said that Mr 

himseir. It added: "Ttelsbour 
Party is totally opposed to terror- 
ist, actions and- to Sian Fein's 
-and dishonest strategy. 
_ must only come about 
by democratic, peaceful means." 

.-. Mr Livingstone, said 
that he had always ocundi 


violence in Northern Ireland but 
that he was not prepared to con- 
demn the violence of one side 
alone, “if you condemn the vio- 
lence of the Republicans, you 
have to condemn the violence of 
the loyalist paramilitaries and 


He said yesterday there- had 
been violence in ahribst all or 
Britain’s colonial oonfBcta. "The 
tragedy was, whether it was 
Cyprus or Aden, we could have 
ne g oti ate d a peaceful settlement 

years earlier but we hung oai and 
the violence went on and on and 
eventually we got depressed and 
gave up. 

"If you actually talk to Ulster 
Unionists they don’t have the 
slightest doubt that eventually 
Britain will go. Their objective is 
to keep us there as long as possi- 
ble,* Mr Livingstone added. 

He said Britain could either do 
what the Rev Ian Paisley wanted 
and “flood the province with 
troops and crush the IRA with a 
degree of ruthlessneas which 
might not* be acceptable in a 
democracy" or it could negotiate. 

“But to cany on as we are not 
negotiating, not actually ending 
the conflict and having Bnniskfl- 
lens or the Barrods bombing or 
the Regent’s Park bombing year 
after year after year seems to me 
to be the worst of all possible 
worlds,' he added. 

Mr .Kevin McNamara, the 
Labour spokesman cm Northern 
Ireland; said tost night that the 
“siren. caH" tor revenge, repres- 
sion, internment and punish- 
ment of the nationalist popula- 
tion in the aftermath of the 
Enniskillen bombing ' had to be 
resisted- 


Labour’s 

Scottish 

strategy 

upstaged 

BY Our PoWcat Correspondent 

LABOUR’S proposals for Sbottish 
devolution, which are to be 
announced today and due to be 
debated in the Commons later 
this month, have been upstaged 
by a Liberal Party decision to 
mount its own debate next Mon- 
day on the government of Scot- 
land. 

Mr Donald Dewar, the shadow 
Scottish Secretary, will today 
unvei l Labour's Scotland Bill at 
muss conferences In London and 
Edinburgh and the party pro- 
poses to i we one of ns niinrta/j 
parliamentary days, dose to St 
Andrew's Day on November 30, 
to debate the measure. 

. .Th e bilL which is based on the 
1978 Scotland Bill, would estab- 
lish a directly-elected Scottish 
assembly with tax -raising pow- 
ers, though not electable on the 
basis of proportional representa- 
tion. 


limit 


BY IVOR OWEN 

OVERSEAS visitors to Britain 
will be able to stay for a maxi- 
mum of six months, instead oi 
12 months as permitted at pres- 
ent, under new regulations to be 
introduced by the Government. 

Sir Douglas Hurd, the Home 
Secretary, announced c hang e 
in the Commons last night when 
moving the second reading of 
the Immigration BUL 
Its primary pro visions remove 
the absolute right of men resi- 
dent in Britain before 1973 to 
bring in their wives and families 
without having to meet the mar 
“ tests in the Immigration 


financial support and accommo- 
dation for any new arrivals with- 
out recourse to public funds. 

Mr Roy Hatters lay, the 
shadow Home Secretary, led 
Ubour protests that these provi- 
sions broke a promise made by 
one of Mr Hurd’s Conservative 
predecessors in 1971 Mr Regin- 
ald Maudling that such men 
would have an absolute statutory 
rives and 


right to 
children 


. The bill also ends the exemp- 
tion of such men from the 
requirement to ensure adequate 


in their wives 
under 16. 

He stressed that the effect 
could be that men who had been 
employed for many years and 
paying income tax and national 
insurance contributions who 

became unemployed might not 
be -able to bring in their wives 
and children because they were 
no longer in a position to sup- 
port them. 


Mr Hattersley described the 
bin as a “rotten, tawdry" Uttle 
measure which pandered to 
those in the Conservative Party 
who wanted to play “the racist 
card during the last general 
election. 

It was a "disgrace” to a demo- 
cratic parliament and would 
prejudice good community rela- 
' Hnmi, 

. Mr Hurd emphasised that the 
change made by the bill would 
not prevent those settled in 
Britain before 2973 bringing 
their wives and children to join 
them. 

It simply meant that they 
would have to satisfy the same 
rules about financial support and 
accommodation already applied 


qulrement to ensure adequate port them. r accommodation already a 

Secrecy bill sponsors to seek 
backing from Prime Minister 

BY MICHAEL CASSELL. POLITICAL CORRESPONDENT 


to those who settled in Britain 
after the beginning of 1978. 

Mr Peter Shore (Lab, Bethnal 
Green and Stepney), a former 
Cabinet minister, said the bill 
would hit hard at particular sec- 
tions of the community, espe- 
cially Bangladeshis. “Far from 
promoting racial harmony, it 
will increase the sense of distrust 
and alienation in the immigrant 
communities." 

' V 

Mr John Watts (C, Slough) 
welcomed the “modest and nces- 
saxy nilL He said labour hod 
run s 'lying and evil' campaign 
against the bill, “stirring up 
unnecessary fear" among immi- 
grants that they might be 
deported if they did not meet 
registration requirements within 
a particular timescale. 


Mr McNami 


who was 


talking at the^ni veraity of 
Ulster, said that the “window of 
created by the out- 
re* be shsttere “ 
demands which would only 
to prevent another downward 
spiral into death and destruction. 


Although Labour accepts that 
the bill has no chance of win- 
ning parliamentary approval, its 
- Introduction to the Commons is 
intended to provide a focus for 
the party's onslaught on govern- 
ment policy towards Scotland 
»itd the alleged absence of a 
Tory mandate north of the bor- 
der because of the party’s weak 
parliamentary position. 

The Liberal decision, together 
with a 10-minute rule bill calling 
for a Scottish Assembly, to be 
introduced on November 25 by 
Mr Archy Kirkwood, the liberal 
Scottish Affairs spokesman, 
means the issue will have been 
ta is ed twice In the Commons by 
the time Labour proposals are 
debated. 

Last night, Mr Kirkwood said 
that next Monday’s debate was 
intended to put the need for a 
Scottish parliament at the top of 
Westminster's political agenda. 


THE promoters of a private 
member's bill which sets out to 
repeal Section 2 of the Official 
Secrets Act are seeking a meet- 
ing with Mm Thatcher to try to 
win government support for the 
measure, which is due to have its 
second reading in January. 

Mrs Thatcher told the Coro 
mans last week that she did not 
think Mr Richard Shepherd's 
Protection of Official Informa- 
tion Bill represented the appro- 
priate vehicle for such complex 
legislation but she confirmed 
that ministers were themselves 
considering changes to the wide- 
ly-discredited Section 2. 

A senior minister said at the 
end of last week that any propos- 
als which did emerge from the 
present ministerial review would 
possibly form the basis of a 
white paper next summer. There 
was no question of any legisla- 
tion being brought forward in 
the current session and an 
attempt to use the Shepherd Mil 
to implement changes' remained 


highly unlikely. 

Mr Shepherd, the Tory MP for 
Aldridge Brown hills, yesterday 
wrote to the Prime Minister ask- 
ing for a meeting between some 
of the bill’s sponsors in an 
attempt to see If an ‘effective 
consensus” could be established. 
The bill does not propose any 
alterations to Section 1 of the 
act, which deals with espionage 
offences. 

Mr Shephard said in his letter 
that, because of the complexify 
of the issues involved in replac- 
ing Section 2, he believed the 
most efficient way of proceeding 
might be to establish a consensus 
between parliamentary and gov-- 
eminent opinion. Hu bill lias 
sought to achieve such a consen 
sus out he would welcome fur 
ther, substantive comment from 
government sources before the 
second reading. 

Mr Shepherd stressed there 
were many precedents for legis- 
lative proposals which began as 


private member's bills becoming 
law after receiving the imprima- 
tur of, or even formal adoption, 
by the Government of the day. 
The question of who introduced 
the bill was “a secondary ques- 
tion of relatively minor lmpor 
tance", Mr Shepherd added. 


His proposals, which to 
the ballot for private meml 
bills, would replace the “catch, 
all" Section 2 with measures to 
protect information in six key 
areas in relation to defence, 
international relations, security 
or intelligence Information 
whose disclosure could seriously 
Inhire the national interest, 
information which could assist 
in committing a crime and cer- 
tain categories of information 
provided in confidence to the 
state by private citizens. 

Hie MP told Mrs Thatcher that 
he and the bill's co-sponsors had 
had always hoped that the issue 
would secure government sup 
post and he emphasised that no 



Richard Shepherd: for 


ministers had so far expressed 
major disagreement with most of 
the bill’s contents. 

Mr Shepherd said that the 
architects of the proposals had 
considered the failure in 1979 to 
introduce changes to the 1911 
act and had produced a bill 
which reflected both the need to 
protect official information, 
which could cause serious injury 
if released, as well as general 
Information which needed less 
than the sanction of criminal 
law. 


MPs raise concern over 
grant for haemophiliacs 


BY TOM LYNCH 

AN ANNOUNCEMENT that the 
Government to to provide £l(kn 


which waa the clearing of a 


to help the L20O haemophiliacs 
who have bean treated with 
blood products Infected with the 
. AIDS virus, waa welcomed with 
reservations by MPs on both 
sides of the Commons 

Mr Tony N ew ton , the fill 

Minister, -said- -SlQio -woukL be 
.paid. to ua Haemo philia. Society 
to estab&h a trust fund to ” 
those Infected with the HI 
virus which to associated with 
AIDS after being treated by the 
NHS with a cantaminatesMuood- 
clotting agent. He said the fond 
would also help relatives of those 
who have developed full-blown 
AIDS, many at whom have since 
died. . 

His statement waa greeted 
with approval from MPfe of ail 
parties who have campaigned for 
extra funding, but there was 
C9nc5m.that.909re.Pf thorn 
receiving payment^ from the 
fund might lose entitlement to 
social security benefit and some 
MPs felt the sum available - 
about 88,000 per victim - would 
not be adequate 

Mr Robin Cook, the shadow 
Social Services Secretary, urged 
the Government not to ’short- 
change" the victims. The money 
was unfikefy to meet the most 
pressing need of moat victims. 


Field (Lab, Birken- 

r Mr Robin Maxwe21-Hya- 
C, Tiverton), lb David 



-Glasgow 

any payments from -the fond 
should be "disregarded" -for social 


Mi. Btf- 
T> told Mi 



THK COMMONS met In. 
tpprehnlvs mood yester- 
day following the ructions 
In the Chamber last week. 
Were we In- for non aggro 
or were lodaomthe 

aaare dvfSaeS 

con duct ? 

Reassurance Boon 
emerged fat dm person of 
John Stokes, the voice of 
Tory traditionalism Cram 
Hal es o wen , and Stourbridge. 
Anarchy waa pat to flight 
and stability restored. 

Where Mrs Thatcher 
wants a return to Victorian 
value*, the Muff Mr Stokes 
s ee m* to believe that the 
nation started to go to the 
dogs with the execution of 
Charles L 

In an I n te r ve nti on yester- 
day he was intent on taking 
as back to foe «a» of chiv- 
alry whoa John Wakeham, 
Leader of the House, was 
answering qocsttou* on the 
sensitive subject ef which 
Journals shoafa be plac ed la 
the Cmaauwis library. 

He wondered if Hr Wake- 
ham would be Mad 
to put in a request foe 
favourite reading' material, 
the Rea cti o na ry Herald and 
Feudal Time*, 

Gravely Hr Wakehamt 
assured Un that his 
request weald be.Uatened. 
to In the right quarters. 
Whether he meant the Com- 
mons Librarian oar the Royal 

College ef Arms n not 
clear. 

In the meantime MBs wflf 
have to make da withrea*. 
lug excerpt* from tida fasci- 
nating but fictitious Journal 
in the Peter Simple column 
to foe Dally Telegraph. 

A little earner there had 
been additional evidence 



that Mr nexHamentazy tra- 
ditions had survived. Inst’ 
week's noisy events. That 
fractions leftwinger Dennis 
Skinner e m er g ed aa a. pillar 
of foe Church. If not of foe 
state. It waa all rather 
bewildering, particalary 
coming from a member who 
had been ordered ont of foe 
Chamber by the Spe ake r 
only i ftw days ago. 

During questions to 

Hichael Alto**, the Tory 
MP who was answering for 
the Church ConunlaetonaM, . 
Skinner raised the matter 

of the church in his beloved 
constituency of Bolsover. 
Naturally. Sktunsr** old 
■m**— at British Coal fop-, 
resented . foe forces of mo 
fom in Id* version. 

He wondered whether Mr 
Alison wee aware that Brit- 
ish Coal.wms bring tardy ln t 

- flBJtncLu Mftte- 
next* for mining subsi- 
dence which was endanger- 
ing the fohrie of Bolsover 
Church. 

Why, he had even elat 
lenged British Coal to 
debate the matter with Mm 
In the fourth In order to get 
negotiations s t ar ted. Mean-* 
while, he urged that the 
Church Commissioners 
should make these < ThiHs> 

’ deal with the matter. 


mingham Perry Barr) told Mr 
Newton that MPs “will not 
accept any of this money finding 
fas way baric to the Treasury via 
the tax system or your depart- 
ment as a result of clawback*. 

Mr Newton described the 810m 
as an “adequate and proper sum' 
and kwisted that it did not repre- 
sent a compensation, scheme out 
was “a recognition of a special 
and unique combination of cir- 
cumstances" . 

He said fog trust would receive 
the money as soon as it was set 
up and 'would make payments 
over a long period, so Interest 
earned would increase the total 
available. 

He said it would be for the 
Haemophilia Society to "consider 
the interaction between the pay- 
ments and the social security 
system in general". He promised 
that his officiato weald give the 
sqdety “the best possible advice - . 


aggro 


The prospect of Skinner 
. taking to the pulpit proba- 
bly struck terror into the 
heart of Mr AHson, a man of 
meek and dried demean- 
our. No doubt be reflected 
that foe Anglicans have 
enough trouble with their 
own turbulent priest* with* 
ont foe member for Bol- 
sover naMng hfs theses to 
the church door. 

Gently Mr Alison com- 
mended Skinner on a theo- 
logical point. He was glad 
that he had ref erred to Phi- 
listines, which was an Old 
/Testament form, rather 
than heretics, which came 
from the New Testament. 
He had found British Coal 
most helpful in these mat- 
ters but he was prepared to 
give the Labour MP any 
assistance he coaid. 

Meanwhile on the Tory 
benches Sydney Chapman 
waa saare concerned over 
foe fine print conce r n i ng 
God and Mstmnoo when Mr 
Alison told him that the 
recent hurricane had done 
£9*0,000 of damage to 
Charfo property. 

Mr Chapman wondered 
Whether such “acts at God” 
would face the Church 
authorities with an awk- 
ward moral dilemma. If 
they foiled to take out 
ins ura nce it would show a 
certain Info of fi n a nci a l 
probity. But if they did so 
Would it-not indicate a cer- 
tain lack of *!■*** in divine 
notedinit 

However, Mr Alison 
declined to be impaled on 
the home of this dilemma. 
The Church Commissioners 
were men. of more robust 
faith, he said. 

Johfr Hunt 


r-;. • 

..•■vV**" 



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- • • 







MANAGEMENT: Small Business 


Financial Times Tuesday November ! 7 1987 


SOME OP THE budding entre- 
preneurs on the 36-week course 
in small business skills at the 
London Business School had not 
sat down to formal learning for 
years. Others bristled with 
degrees and diplomas and had 
moved almost directly from 
standing in front of the black- 
board to sit with the students in 
class. 

Whatever their background, all 
16 attending the Firmstart pro- 
gramme - intended for people 


" SEE ME AFTER CLASS , Tin PS ON- 


our customers' bottle-, 


necks." he says unconvincingly. 
Pa van is clearly not satisfied.! 
“Here is a bank manager con 


Polish middlemen 




fronted with t mother computer 
company," he says. ‘You have 


with a business idea or a young 
company with substantial 
growth potential - seemed set for 
a gruelling time. 

This programme rapidly dis- 
covers the weaknesses in the 
individual and in the business," 
promised Catherine Gurling, 
director of enterprise pro- 
grammes at the schooL "It aims 
to get you to recognise those 
weaknesses and plug the gaps.’ 

Her remarks came at the 
beginning of the third annual 
Firmstart scheme, which began 
at the LBS last month. This 
year's participants tend to be 
somewhat older than some in 


Ft 





only a few minutes to get him to 
understand what it is you do * 

David Lane gets off lightly ai 
this session but his choice of title 
for his company seems due to 
come in for scrutiny. ‘Faculty of 
Experiential Learning?" queries 

Pa van. "It sounds like a sect.” 

Day Three. Over lunch some 
acknowledge the extent to which 
the course is forcing them to 
reassess their ideas, t feel like 
going back to the beginning and 
starting my business all over 
again," comments Ian Purdy, a 
former petrol station manager 
who has set up a distribution 
and haulage business. 

Some participants on previous 
courses have changed their busi- 
ness plans half way through. 
Others have had change forced 


A private co-operative to 


link state enterprises 


BY CHRISTOPHER BOB1NSK1 IN WARSAW 


FEW IMAGINED when Andrzej 
KaniewskJ and his colleagues 
went on trial in 1962 for lead- 
ing a strike against martial law 
at Poland's Ursus tractor fac-, 
tory that five years later they 
would not only be free but par- 
ticipating in rather a lucrative 
business enterprise, in fact, 
they emerged 1 from prison in 
1984 during one of the post- 
martial law amnesties and set 


SflNk 


upon them because customers 
relationships alter or they fall 
out with their partners. 

Day Pour finishes up with a 
social evening which brings 
course members together with 
students from previous years. 

Day Five takes the students 
into book-keeping and simple 
accounting. The day is designed 
as a practical exercise with each 
team given a box of invoices, 
cheque stubs and bank state- 
ments from which they must 
draw up a picture erf the com- 
pany’s position. 

' Team performance varies. 


previous years so as the pro- 
gramme stretches out ahead of 
them they should ha 


them they should have more 
experience to deal with prob- 
lems. They range in age from 
Anthony Dunford, a 66-year-old 


Anthony Dunford, a 66-year -old 
engineering consultant with 
plans for an electronic publish-, 
ing business, to Sally Storey, 26, 
who runs a lighting design com- 
pany in West London. 

Many have lengthy experience 
working for large firms while a 
substantial group this time 
round have left education or the timer ch< 


A gruelling time 
was had by all 


Charles Batchelor sits in on a course for entrepreneurs 


up Unicura, a co-operative 
which acts as a middleman 


1 deliver a quality the complex hio-techn 


sold and King, take up the point 


social services for the world of product," she says. "I couldn't ness run by ‘Derek . ClissoTd, but .that they have apremium prod- 
business. David Lane, at present charge more ana 111 never get Janet Billinge, who plans to set net to sell but the discussion 


business. David Lane, at present charge more and I’ll never get Ji 
director of the educational guid- larger contracts unless I package u 
ance centre in the north London myself.” pi 


pany, corn- 
business did 


borough of Islington, is setting David Lane says he wanted- to not come over at alL 

up the grandly titled Faculty of get away from the acaderrtic Gurling is satisfied with her 

Experiential Learning to provide environment in which his team proteges start despite the vary- 


specialised 
cnaiunng cs 


changing careers, while William into practice in the commercial They got on well. They laughed. 
James, a polytechnic lecturer, ' world. That is important," she says, 

wants to market bedroom fumi- What the students have signed Half the benflt of a course like 
Cure. on for is a free course spread this comes for informal contacts 

The common elements that over six months. It has periods between the students in coffee 


Gurling was seeking Cram the 80 of formal tuition interspersed breaks between the students in 
people who applied to join the with periods out in the market coffee breaks and over dinner, 
course were credibility and place, cultivating customers and The people who avoid the social 
determination. "Their track financiers, it starts with an breaks gain least, she has 
record and. financial resources introductory residential week at noticed. 

have to match their business the LBS to be followed up by one Later the same day the course 
opportunity otherwise they two-day session a month moves on to marketing, a subject 
won't have a viable business, throughout winter and spring. which takes up most of the first 


won't have a viable business, 
she explains. "None of them is 


Day one starts with the partied- three days. The students work in 


trying to do what is theoretically pants pairing up; then each groups of four to tackle case his- 


beyond them though some are makes a brief presentation to the tories. One requires them to 


trying to do too many things." group of his or her partner’s devise a marketing strategy for a 
What she hopes to rave them - business. Alex Stewart-Clark, 27, Scottish malt whisky producer 
apart from what looks to be a with a timber broking business which has diversified by devel- 
psychological assault course - are and ambitions to become a tim- oping a natural colouring made 
a range of management siring in ber merchant, is paired with from roasted barley, 
special areas such as marketing Barry Drake, 39, who has a bud- Gurling and another lecturer 


special areas such as marketing 
and finance and a general idea of 
what management is about 
The pupils themselves have 


met Billinge, who plans to set uct to sell but the discussion 
p a software company, com- wanders on rather aimlessly, 
fains later that her business did ' The real test Is to come on the 
ot come over at all. evening of day two when the 16 

Gurling is satisfied with her split into small tutorial groups 
rotegea start despite the vary- and their own businesses or busi- 
yj quality of the presentations, ness ideas are put under scra- 
nhey got on well. - They laughed, tiny. The tutors act as bankers to 
hat is' important," she says, vhom the students must explain 
alf the benflt of a course like their companies and markets, 
tis comes for informal contacts Nick King Is forced to admit he 
’tween the students in coffee doesn’t have detailed figures for 
reaks between the students in lb® *ize of the computer cabling 
iffee breaks and over dinner, w switching equipment market, 
he people who avoid the social Sally Storey has no figures for 
reaks gain least, she has “* e growth rate of the lighting 
ottoed. market. "I just know it is grow- 

Later the same day the course log.” she says hopefully, 
loves on to marketing, a subject James Macrae, who runs a suc- 
hich takes up most of the first cessful up-market greeting cards 
tree days. The students work in business with annual sales of 
■cups of four to tackle case his- more than 8100,000, has a tough 
tries. One requires them to time. Asked to describe who 
2 vise a marketing strategy for a -buys his cards, Macrae ventures 
sottish malt whisky producer "a_ person looking for a more cre- 
hich has diversified by devel- ative card". "Pooh!" snorts Mark 
ring a natural colouring made P&van, the tutor. "That is not a 
om roasted barley. definition of your customers. 

Gurling and another lecturer Whoj* actually taking it off tim 


Some deduce that the company 
is heading for trouble with a 
large bad debt looming and sales 
in need of a boost Others get 
bogged down in the detail and 
fail to realise what the numbers 
are telling them. 

Gurling hopes to overcome the 
problems previous Firmstart par- 
ticipants raced in understanding 
finance by operating a "buddy" 
system, teaming each course 
member with a young accoun- 
tant from a major firm. 

After the gloom of the earlier 
part of the week a more optimis- 
tic mood prevails. The course 
still has many months to run. 
There will be short visits back to 
the classroom but most of the I 
rest of the time will be spent 
running their businesses. i 

As important as the technical 


Later the same day the course 
moves on to marketing, a subject 
which takes up most of the first 


information they have picked up 
has been the chance to stand 
back and consider what they are 
doing. Lane says he has resolved 
not to rush at expanding his 
company until more preparation 
has been done. 

"Most of the information we 
were given we could have not 
out of a book," he says. "What 
was most valuable was being 
able to ask the questions." 


r’s devise a marketing strategy for a 


k, 27, Scottish malt whisky producer a_ person lool 
tineas which has diversified by devel- “Hve card". 


ness designing control rooms for play the directors of the com- shelf?" 
use in large industrial plant pony, fieldinn Questions an the “I'm a 


Drake seems more certain of properties and potential of their Pavan expl 


questions an the 


come for a variety of motives, his numbers and the broader new product. 


Jring financial person," 
plains. "If you cant 


give me even a fed for the envi- 


Carole Thomas has worked for concepts than the younger Sbe- Storey and Stewat-Clarfc do the ronment you are operating in 
many years as a freelance wart-Clark but both make questioning for their group but you are expecting me to take you 


designer, specialising in artwork assured presentations of the get confused over the answers on trust fiom the vety start” 

for cookery magazines, but felt otheris business. Nick King, who they are given. They are in Nick King has similar diffi- 

the business had to grow to get has a computer switching equip- despair. "We will have to devise muty explaining precisely what 

anywhere. merit company, manages a lucid * whole new strategy, complains {*£*. computer switchgear does. 


ywnere. mem company, manages a lucid * wnoie new strategy, complains computer a wi ten gear aoes. 

My clients see me as a small- explanation of Chiral Organics, Storey. Their two partners, Clis- have a unique application to 


Firmstart courses are run at 
wine colleges around the coun- 
try. Contact Manpower Services \ 
Commission, Moorfoot, Shef- 
field SI 4PQ. LBS is at Sussex , 
Place, Regent's Park, London 
NWi 4SA. 


They started by tramping 
around from factory to factory 


around from factory to factory 
simply asking what was avail- 
able. They also put ads in the 


papers saying that they could 
help to provide wanted items. 


help to provide want 


Business Opportunities 


FINANCE FOR 

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to build Hotel - Golf-Club Complex 
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SOUTH FINISTERE - BRITTANY 
We have letters of intent for sale of land and 
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CAD SOFTWARE PRODUCER 
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Bob to Bet CS, 8-lt BnteDntte Sente. Lw<— , WIM SET 


which acts as a middleman 
between state sector enter- 
prises. 

- Working on an average 4 per 
cent commission, Unicom finds 
customers for end products and 
looks for raw materials and 
equipment that companies 
might need. The opportunity 
arose with the. implementation 
of economic reforms in the 
1980s, when central allocation 


The' beginning wasn’t easy but 
the demand was there, ana they 
soon became expert. State com-, 
ponies began applying to them 
for help. 

Despite talk of equal treat- 
ment for each sector - state, co- 
operative and private - official- 
dom at various levels continues 
to frown on private companies. 
State managers, too, fear that 
they could be suspected of tak- 
ing bribes if they sell or buy 
from than. 

This is where Uni cum comes 
in. As a co-operative it Is offi- 
cially classified as a “socialised 
sector" outfit and therefore 
ideologically clean. State and 
private sector companies want- 


previous year's earnings. This 
has effectively meant that Unj- 


has effectively meant that Unj- 


ing to do business with each 
other ask Unicom to act as a 


cum is having to turn away 
business and its growth will 


other ask Unicorn to act as a 
middleman. They are only too 
happy to pay the commission. 


However, it has responded by 
setting up joint stock companies 


was removed. Mary companies 
were left adrift with little expe- 
rience of procurement or mar- 
keting. 

Increased taxes have been 
imposed on stocks which means 
that companies are- having to 
dear warehouses - especially of 
items no longer needed for cur- 
rent production. In the past, 
these would have been left to 
go to waste. 

"Anyone could have had the 
idea," says a Unicum member, 
-Jerzy DiatiowickL “In fact, it 
was thought up in Hrubieszow 
prison." When they came out of 
I prison, they tried to go back to 
' their old jobs -on the shopfloor 
or as engineering designers. But 
they ran up against & police 
blacklist “Really we had now- 
ehere else to go so we had noth- 
ing to lose % setting up the 
co-operative," says one of the 
ten founders, four of whom 
came from Ursus. 

Unicum was registered in 
1984. The participants were 
mildly surprised at being able 
to do this, but surmised that 
the police were happy to have 
them together where it was eas- 
ier to keep an eye on them. 

Occupations of the ten had 
little to do with commerce. One 
had been a journalist, another a 
sociologist, then there were the 
Ursus rour and Andrzej Machal- 
ski, now chairman of Unicom, 
who had once taught philoso- 
phy at Warsaw University. 


under a 1934 company code, 
still in force, which obliges the 
courts to register such compa- 
nies without further permission 
having to be granted. Compa- 
nies in their first year are not 
covered by the wage tax. 

By this autumn, Unicum was 
a majority shareholder in five 
such new companies. One deals 
in computer hard and software, 
another offers architectural 
services, a couple are simply 
trading companies like Unicum 
and one aims to implement new 
technologies in the energy sec- 
tor. 


Working on an 
average 4 per 
cent commission, 
Unicum finds 
customers for 
end products and 
looks for raw 
materials and 
equipment that 
companies might 
need. 


“It's hard work and filling out 
the paperwork is deadly boring, 
bat there are the rewards, "says 
Diatlowidti. Unicum has nowi 
grown to 40 members and the 
turnover this year will be zloty 
3.5bn (t 11.6m). 

As DiatJowicki says: "Anyone 
can set up in this business, 
we've proved that.” Other coxn- 


S nies doing the same thing 
ve already been set up. The 


have already been set up. The 
one which is officially supposed 
to conduct this trade Is Bom, a 


large state sector company. 
But there is one differe 


But there is. one difference: 
Unicum works on a commission 
basis. That is the secret of its 
success. Its members are getting 
at least three tunes as much as 
they could have hoped to earn 
if they had gone back to their 
old jobs. Indeed, even in the 
early months the co-operative 
decided that a member’s cotn- 


However successful these 
companies may be in providing 
their employees with a high 
income, profit taxes In the 
region of 80 per cent mean that 
it will still be difficult to gener- 
ate capital for investment. 
Another snag is that a recent 
local government law gives 
local authorities the right to 
licence economic ventures in 
their area. In Warsaw, where 
Unicum is based, bureaucratic 
opposition to such initiatives 
has meant that licences have 
not been forthcoming. 

Nevertheless, some compa- 
nies have been started. .The 
computer company, for 
instance, already employs 30 
people. Should the local author- 
ity complain, Unicum is ready 
to test the contradiction 
between the 1934 law and the 
local government act in the 
courts. 

It is this spirit of defiance 
which marks out these new. 


style entrepreneurs from, 
Poland a traditional small seal* 


Poland's traditional small scale 
private producers. 


THANK YOU 


; For yoor QTgv frdm ii q t re y tme to developing trade oppor tun ities with oar 
■ representatives of tbe The Sl Petersburg Q m i rscr ma an the west coast of 
Florida daring onr recent visit to London. 

Anyone who was unable to meet whh os and would Kke add contact in the^ USA. 
Mr WOfiaa Canton, PlniilM Gouty ladnstigCMBcfi. 

2300 Tafl Ptee* Drive, Saite 1 13, Lng*, Florida 3*641 or Td H13/53M20B 
Oar Mwnsnuxter nd> tr *nc* ia lembm M J988 ami wmU Or 
as ari wU mB hamw taBrUmk mi teuton. 


A MAJOR PLC 

With substantial cash resources is looking to 
acquire vehicle rental and contract hire 
companies. 

Principles Only please write in cortfidence to Box H28J3, 
Financial Times, London, EC4P 4RY 


A 


American Appraisal (UK) Limited 


49 Whitehall, London Telephone: Ul-839 1776 

THE VALUE OF APPRAISAL 

cm for a copy or oua new aao anu g 


BANK FINANCE 


We are a substantial and weU established bank interested 
in talking to potential clients on propositions requiring 
finance of £500,000 or morc^ for up to 5 years, 

Please write Box F7693, Financial Times, • 

10 Cannon Street, London EC4P 4BY 


INTERNATIONAL 
COMPANY SERVICES 
LTD 



INNOVATIVE 
PEST CONTROL 
SYSTEMS 


Gram wWttaiv aratt JoM Vnu*r Pat- 


■erta- toita-drwfcpMi* an) imJurevM- 
miad tf KdMMipiaM spun* dntnxd 
■otf puraM tor pniirtttoii amSw wfe ad 
Ainnfv to prapoty. IUn porola} 

Cnwp irattrt*- muddr 

waKWmFMMrHnKMliMv 
HRtx Mtit capa- 


_jw «lnn> fcW>WH» 

IWmiianjpQanaiM 

LMftanwor 


Executive Jet 


A delightfully fitted out Falcon 
200 Fsnjttfw tin busy executive. 
Smart Kterior paint Schama, 
Im ma c ulate comflthw tfamughnot 


“OH WHAT A 
BEAUTIFUL 
MORNING^” 

fcwwrtmara req uire d lor a 
National Tour of The 
Regan* and Hanraoratala 
Musical, 

OKLAHOMA! 


r 


mission should progressively 
decrease after it reached a cer- 
tain" level. This was to avoid 
attracting attention to high; 
incomes. 

Once, a plain clothes police- 
man detaining one of the mem- 
bers for a few hours on the eve 
of a planned Solidarity demon- 
stration exploded with sur- 
prised fury whesi he heard how 
much his victim was earning. 
But last year, the government 
imposed a prohibitive tax on 
any rise In income which was 
more than 12 per cent over the 


Forfufl dataJh contact: 


Exacatiw JatCwtra, Htettawr Airowt, 
KnMhm TUB 3AE Tri:01-759 2141 j 


For further detsfla 
contact 01 226 BSei or 
013117188 


MASTERS GOLF 


Join ouz unique trip to The 

Masters at Augusts in April 
followed by 3 day* playing 
•orac great goH in Roridcf 
Noksmti U Lo n don I tnilud 
lOoTfceMaB. London W5 2PJ 
‘Mafb'Mtt-SWnQl T4 *k 439676 


Ttadner requires 
owner/s 


fof. young chaser with smart 
winning form. High fins* 
prospect, for the coming 
months. Tel (056 886)253 


V -** * 


S' : - 


* 






19 



November 17 1937 


Business Opportunities 


Businesses for Sale 


MARKETING CQNSOUANTS 
smmi^mRAis^ venture; 
DEVEXOPHEWTCKTOl 
P ROJECT FI NANCE , 
MERCTRSacqD B mO N& . 
BUSINESS AND MAIUCCTHANWNC. 

Rvapericnccd^pn^ahmdachbe 
„ written- . 

IkHnAtiDinlK' . 
MadewCkcAResootesEj^ 
BCMBarlSSfl,' 

London WON3XX: . 



MICROCOMPUTER RETAIL BUSINESS 

Highly successftaLweH established computer store (turnover 
24m) comprising shops, offices and warehouse accommodation. 
Important dty locatioi], one hour fiom Cental London. Wide 
product range - IBM to Amstrad - and excellent customer base. 
Write Box H2729. Financial Times 
ItCmnoi Street, London EC4P 4BY 


CARPET AND SOFT FURNISHING COMPANY 
FOR SALE 

"Wefl established prime retail business based in South-West, 
Fre ehold outlets totalling 7,000. sqJL turnover in excess of 
£&09fl30Q. Excctoir prospects for expansion. 


reply to Bo* No H2767, Financial Tima. 

BY 


MORTGAGES 

- Ob OwnmrrrMl * Udnwriafr 
FrepredarM pfiaM» 
VlOyan 

hfcwt OBt y . M ininaini lo w ft SOJOO 
Apptyioe 


FINANCIAL 

SPECIALISTS 

We hdp raise finance for 
t i p iim nniiidilwgliyiwin. 
Prepare companies for USM. 
Provi de profit improvement & 
■i nT^rim .nmqgca ieai nrrriirg, 
Gmdoct rescue operations. - 


MVESTMBiT SOUGHT FOR. 
A DEW WEST-Eftt BKJSICAt. 

Cometothe'star-studdod 
concert Version ata London 
theatre and decide for. 
yourself . For bivBatkxi to 
concarton evening 29th 
November 

mng 370-6308 lOmnBpm 
. JSOWf”- 


Businesses Wanted 


PLC WISHES TO 
ACQUIRE 

Vacant single storey factory minimum 
100,000 sq 'ft, maximum 300,000 sq ft, 
minimum eaves height 18 ft. Within Gtr. 
Manchester area Bolton preferred. Will 
purchase or lease* 

Reply to Bax H2807, Financial Times, - 
London, EC4P4BY. 




Awry nra onxxromiy for boo- 

r ra ^ li'. a m iA mk lni.i l gn llm fed 

Genoa brawny in AIbert»/Cta»d* 
to produce noa-pntcanzed Oenmn 
beer ind export port of tbc prodoo- 
tuefothe IJSA_ 

Ooriacc - 
Bend J f J i t — i w • 

OboWKd 

D 6M0IM HowtaWOrenny 
TUac 41091 6 Lire D 


U&MbMtButadlMgie 

hrec bM rariMy bkoum preaaaiM Ar 
nktaa or joat mun. Biudni 
■ceded. H&raanradapiQL 



BUSINESS WANTED 


A nccareAd- tad profitable haMiBgr compuy whit interna in textile 
inanii&cturc and p rope rt y wiahea «o expand through acquisition. 

We are seekra* procreative companies, not necessarily m our own GeUb, with 
T/O"* of up to £5 xmOionfeond airily motivated managements whose further 
HpwAw plans maybe through lade of available finance car whose 

owacn wish to retire in the bew few years. 

w» would give evoy opportunity for existing managetneats to root* our 
cfeaBcxgpng targets and in progress with as as part of this group of companies- 
we do not want to purcharo in tatter to asset strip. 

KnfUaOmildbtmUnandlmtkntttictuttmfidtmxtmtktCnmrmxrSKTwtmrr, 




WANTED 
SURPLUS STOCK 

Immediate cash iwrihWelbr 
surplus stock or liquidators . 

stock of any type. 
Manufactures or importer* 
only. No mtenuedaries 


LCBkkorV.Ouurfy 
kodin' Eaatariaai.ua. 

114 few UndStnxx 
New Yurt. N.Y. UXH4 
■ 2124! 34400 



Pic Engineering Seeks Acquisitions 

A propcsste pic b seeking to expand to business base through 
acquisition bi the manufacturing sector 

Wfe are looking for companies in the small to medhia size range with 
f . . ( ; pre- tax profits of up to £lm 

Comtderatfamfor the purchase of any acquisition can be based on 
cash or equity or a suitable mix 

Write Bax H2Z7T, Financial Times, IB Cannon St, London EC4P 4 BY 


TWO OUBLWJUfnDi UnmpM SyrUMMtf 
BT Wrtri gglB pftona symrai aij oontrol 
«qj|x.4 weiU (i—cjimCT8qi - 




K^assr- 


(100 mflKcm dollars 
available) ' 

we ate. direct lenders far inveat- 
ment in New Jeney, New York. 
Conn-commer c ial real estate, 
bosineaa4xtdGerscnqiiiresinvited, 
In* ttl lM tB 

- Contact >201 573 8614 


Business Services 


FOOD PROCESSING CAPACITY 

Chffied Food Manufacturer seeks additional capacity 
in excess of 10,000 sq ft suitable services. Vacant 
premises^ going con c erns, full or partial 
buyout considered. 

Appfy Box F79tt, Flnandal Tanra, 19 Onro— Store*. I mrin, EG4P 4BY 




LIMITED COMPANIES 


UK. and International 
isle of Man & Non-Resident 


WiJft y, 


v ' i y -f- 


REQUIRED 
SHEETMETAL 
AND/OR 
TUBE WORKING 
BUSINESS 

with £0JZ5m-£0.75m turnover. 
Must idocate to our costing site 
ip the Wat Midlands. 

Write Bat B2327 
UnanddTbnes 
K) Camion Street 
London EC4P4B7 


re* ** 

s a* 5 # 
seat 


CONTINENTAL WAREHOUSING, 


d te t ribm ioa nod adnunispnribB far cornpamea atpafag or nato n c tnrin g 
their contioental btuineu. Pemberton International provides a 
(ophinkated coropean and dutributron system, backed by • nigh calibre 
pi^lfttiiiigual mm i i y «fv . Bt team. 

Pemberton International lid, 19 Stratford Place, London. 

WIN OAF.Td: 01 409 8088/01493 8280 . 


OPENING AN OFFICE IN 
NEW YORK CITY? 

PH find you Office Space, 
Attorneya^Accountants, 
RatiW | S taffing imrl Hntrnig 








I liZTZ 

Si 

wmm 


01-930 9631 

uXu? 


FCMA AND MD TEAM 


■eric joint or individual sd hoc. 

prqjccts-troubtesbooxitig. 
Cpnndouicy, company doctor; 

mvestiga&wor acooomancy 
work etc. Based Ni Engl an d but 
prepared to trevd UK or ovetsens. 
Experienced over a wide mace of 
industries. 

MmBateBexJBJMJA 


Plant & Machinery 


trass* 





ENVELOPE 

MACHINERY 


required by UK 
manufacturer 

Memer Paper Ltd 
Lower Waken Street 
Woherkampton 
( 0902)57152 


Turnover £600,000 seek 
merger with compatible 
company to maximise potential 
of modern > premises and 

ffgtllpmitit. . 



SMALL INNOVATIVE 
RETAIL 


■ :Tlpy|7TJH?r4? 


WANTED 

Rapid DnveJopmant through 
Extaflng Management by Major 
UJC Rotas and Property PLC. 

Fteam write la fiat H282% 
AxMctefTtewfeTOCantmiSlmst 
Laedoa, EC4P4BV 


INNOVATIVE 

COMPANY 

presently engaged ip the consumer 
products b usin ess (PXY.. 
Gacdains ft Leisure) seeks to 
expand its prodna range. 
WfllcocaiderftoQBiismensor 
ahemaiively ma rin^in g Jrife nm 
be provided far a joint venture. 
Write Box H28Z7rtnKfel 
Ttocs, 19 Caauew Street, 
CendMkEC4P4BY 


For Sale 

Retirement Village (Ireland) 

F or sale, the business and assets associated with die retirement 
facilities. Inown as Clcnmannon Retirement Village, situated 28 
trifles from Dublin at Oonmannoo, Ashfoid, Ca Wicklow, Ireland. 

The complex, locat ed on a site of c.25 acres includes Clonmanuon 
House, an original Georgian residence constructed c.3780, which 
lKXises a Health Board approved Nursing Home and all care and 
recreational facilit ie s. 

The Village also includes 41 bungalows, with planning pemussion for 
additions, which have been specifically designed for the needs of 
retired people. 


ENQUIRIES TO THE REC 33 VER: 

Rory OTcrrall. F.CA. Toecfce Ron & Gl, Adelaide Hone, 19-20 Adelaide 
Rood, Dridh 2 , Ircknd, 

Telephone; DabBa 784833 . Tdac 30232 TRCM El, Ras DnbDa 784029 . 


c 1 1 Kis ri i ; <vc. ( :Li 


CASH & CARRY, 
NORTH LONDON 
CLOSE TO EUSTON 
STATION 

T/O approx £5 million pa. GP 

in excess of 6%. Valuable 

freehold site ind bariums grins 
concern £850,000 + SAV 
(approx hilf afflioo) or 
alicnuuivc opiion to purchase 
company byirauenaoifcs; Rc£ 

94 VhMrte Street 
London SWlHONW 



Touche Ross 

Chartered Accountants 


dte -Wii.iir. 


Peterborough United 
Football Club limited 

in Administration 


The Joint Administrators seek enquiries from 
pames interested m the fbUowingopponunmcs: 

♦ Direct inv es tm e nt in the activities of the Club 

95 The potential of additional leisure facilities 
at the Club’s ground at fjondon Road, 
Peterborough 

* The redevelopment of the freehold site and 
relocation or the Chib 

A prior condition of any proposals that it must 
safeguard die continuance of league football in 
Pe te rborough. 

Written enquiries only toe 

2 ha Joint Administrators, 

Spicer md Pcgler & Partners, 

Led* House, 

Station Road, 

Cambridge CB1 2RN 

Spicer and Begler 

^hUF & Fanners 


Webco Group 

Limited 

in Receivership 

LTJ5. Rubber Limited 

in Receivership 

FOR SALE ns a going concern 

the business carried on by die above compa- 
nies in Aberdeen 

Comprising Heritable and Leasehold Properties 
fogy eq uipp ed far the pro ducti on of; 

Pip e Cost in g foe the OU. Industry, aad M ou ld e d 
Rubber Products far the Automotive, Oil, Push- 
ing and Construction Industries. 

Farther particulars pom &e Jotut Beceiuers, 
Robert J. T. GteuAJXJ. Watt obtainable at the 
offices qfi 



Cork Gully 


Code Gully, 

82 Albyn Place. 
ABERDEEN, 
AB1 1YL. 
ReCELA. 

TeL 0224 574007 
Telex 739067 
Fax 0224 576183 


BOSUN LICENSED FREE HOUSE 
AND RESTAURANT 















Marwick McLintock 


!»’rJ r^firTTr 


' B32DL 

~..A Telefax; 0C1-233 4390 


DIVERCO 

Sell Companies 
Nationwide 



017992121 


Dro Good Leasehold 

Fashion Shops 

la Puroey High Street and Kteg Street 
- HHnmoimiib For Sale. Eiirar as a 
■ring concern baste or ate of Irasa. 
Principal* ooly emo 


Heating and Ventilation 
Engineers and 
ricators 
Dunfermline, Fife 

Hillend Ventilation 
Company Limited 

(INRECBVRSHIP) 

The busfrffiss and assets of tills company are far sale 
asagangasKembyilsadmirasb^verecava', 

Mr A RD Jamieson. 

ThisfiTincrfheahngsffidvenmaiioflerighieersspecialisesin 
ttedeslgi.£abrhatlanandinstanah'onofwann^rheafing 
systemsand ventilation systems. Kitchen canopies a 
speciality. 

•Annual turnover £1m. 


i iTiTi v ii .ip .v i.L?Ti 


feet office accommotMon, 1 
assembly wftehop. 

• Computer aided dud-work manufaduring systems 


1 JUiP |l |J VlT- LilLiiL 4 In) IIIMLhl 


• Clierts mcfixfeCSA, PSA. Rxaaijffiorffies and major 
building conbadois. 

> Reputa&on for NghoualHyard reiiabi% 




',"B| 


PiruxTfhterhouse 


Wine Importers 

South Wales 

TteBasmess,BusBiess Assets and (ixjdwfflofliKlacerre 
EtFBs Limited arc offered forsafe 

The company operates as an importer of wmesspedafi^ in 
fiue^ wines, having a wholesale and retail outlet and a bonded 
warehouse fadflty fa Cardifi: 

The company employs apprarimately 30 addevingmaniiDd 
turnover of app r oximat ely £L5 nriBofl. 

Rir&irtfierdetaikcoatactStephenl.HaQorti^ 

Joint Adminis&alive Eeodves.ffidEird A Smart or 
TTuMthylLHamsaL-DekHtteHaskins&Sdls, 

■flidor House, 16 Cathedral Road, 

Cardiff CF16PN on (0222)239944. 

■Wex 498109- 
fax (0222) 23883a 



Architectural Metalwork 
and Fencing 


Gloucestershire 


^hrfrafinn^ nenKtiniltp<f JnlinnnrgErR° nrfngfimfte d.areoflfefed 


histafla of Arcteecmral Metalwork, exnpioyedoapreso^ous 
wocWwktetMniraas by Archfieds and Specifiers. The companies 

opentefinom amodem 10 . 000 sqA&oay ttTbwtastary emptoy70, 


• ■ u . * 1 1 ■" 9 r ' 1 ’\-r : 1 1 1 1*. 1 1 Ur » • T 1 1 . : * * .'-Lir A 1 .- 


appnniaMMriy£L5mperaiHHBU. 

TteonxximiletsefaoldtaTEmaempropertteoearC be tofdiamw 

finale. 

P j f f i u t i tprdrtiril^mnfatiWBBamE. Price or theJ<MX Ad n ti idst n ilive 
BecebecUchaid A SoattaiDeloine 


16 Cathedral Boffil, CartfifF CF1 flPN on 
(0222) 239944-Htt 498109. 

Fax (0222) 238838. 



excellent acquisition 

OPPORTUNITY 
(£620,000 Net profit before tax) 

Specialist Manufacturer and sub contractor allied to 
the Construction Industry. Established over 25 yean. 
Agencies abroad, outstanding prospects for further 
expansions. Director participation after sale if 
required. Turnover £1.5 million. Offers over £1.5 
million. 

Write Box H2919, Financial Times, 10 Cannon Street 
London EC4P4BY ' 


































Financial Times Tuesday November 17 1987 


Businesses For Sale 


COMPACT DISC, RECORD, 
TAPE AND LEISURE 
PRODUCT MERCHANDISER 

OASIS MERCHANDISING SERVICES LIMITED 
(IN RECEIVERSHIP) 


Ctu^ \ 

OASIS 

COLLECTION/ 


Business and assets for sale. 

The business comprises die merchan- 
dising of music capes, compact discs, 
records and other leisure related products 
to service stations, convenience stores and 
other similar oudecs, for sale on custom 
built presentation racks provided by die 

company. 

The customer base is in excess of 2500 
customers including major national 
accounts. There are 52 employees includ- 
ing a sales force covering die whole of 
the United Kingdom. 

Turnover in excess of £3 million p.a. 

Locared in Haslemere, Surrey. 

For further details contact: 

WM Roberts or TC Cartel; 

Ernst & Whinney, Beeket House, 

1 Lambeth Palace Road, London A 

SE1 7EU. Tel: 01-928 2000. J?‘ 

Telex: 885234. Fax: 01- 928 1345. 


ifl Ernst &Whinney 

Accountants, Advisers, Consultants 


HYGIENIC ENGINEERING 
LIMITED 

(IN ADMINISTRATION) 

(AH SCHEELE APPOINTED ADMINISTRATOR 30th OCTOBER 1987) 

Long-established .dolled metal 
fabrication and specialist manufac- 
turer Co the catering and sanitary ware 

markets, trading out of 17,700 sq. ft. JfiC 
industrial premises in Halifax, \Rfest 
Yorkshire. 

Interested parries please c o n t a ct: 

AC Schede or RJL Barker; SEP 

Ernst fit Whinney, EO. Box 61, Sr 
Cloth Hall Court, 14 King Street, Mp 
Leeds LSI 2JN- Telephone: (0532) jf? 

431221. Tdoc 557635. 

Fax: (0532) 434195. 


BUSINESS FOR SALE ADVANCED AUTOMATED 


HANDLING SYSTEMS MANUFACTURERS 


Including the following products: 

* Automatic Guided Vehicles using the very latest technology which 
includes the unique Voice Activated Equipment to control all 
systems. 

* Ught/Medium/Heavy Duty Overhead Conveyors 

* A revoluntionary accumulating powered roller conveyor designed for 
complete automation by computer and voice. 

NB No further research or development is necessary. 

The business is a going concern with excellent "High Tec" 
management, work in progress and world wide enquiries. The 
proprietor is looking to retire and invites offers (from principals only) in 
excess of £1 MILLION 


AB enquiries in writing tor A WkfuddA Co, Audit House, 
- 151 High Street, Bttericsy, Essex CM12 SAB 


Residential Letting 

WeS estabfisted London 

TB S fa te ntta*. tatting and 

property managemant 
business for sate. 

. Oiau>iw woKKa»ii, 
PtoMXMTknM. 10 Canon ten, 
LondmlCVW 


FOR SALE 

Prospective ptatk hanger numo. 
facwrisc bttOTCM near the 
DscUum, Chntti for develop, 
meat. Approx, tfo £110,00 per 
annum. 41% gm 

Write 8m H2S2S. FfaaodriTim, 
lOCUnoSmt 
- ImdM EC*P 4BY. 


COACH/BUS 
BUSINESS FOR 
SALE 

Full of part disposal- Hem/Enex/ 
North London area. Close to 
M25. Snhstaiitial conuacw. 

Bi»8m to Pn H»a. llwa, 

NCwiSMMtolCffdV 


IU Ernst & Whinney 

Accountants, Advisers, Consultants 



FOR SALE 


LADIES FASHION KNITWEAR COMPANY ■ 
LEICESTER A 

Premises of 6,800 sq ft available either SK 
freehold or leasehold in City Centre: Jk DC 

Established workforce of 25. 

The plant which is in good condition is 
currently producing some 300/350 dozen 
garments per week- A? 

Current order book is full and die Jp? 
company enjoys excellent raa3 order £5 
contracts. 1 #? 

For further details telephone 
M. Mantou on (0533) 549818: j&T 


Hi Ernst &Whirihey 

Acaxnranrs, Advisfi 5 ,Coriaufe 8 bt»' . 


CAE SOFTWARE AND 
ELECTRONIC INSTRUMENT 
SUPPLIERS A 

FETRATEC LIMITED 
(IN RECEIVERSHIP) 

Business and assets for sale. 
TumovCTappraxiinately £500,000. *£ 

Operating from rented premises in . Mf 
Egfaam, Surrey. Jp,' 

For further details contact: jfr - 

W] HElles orNJ Hamilton, Jp 

Ernst &. Whinney, 30 Garrard Sl, 

Reading RG11NR. _J0& P 

Tel: (0734) 50061L 


RETAIL CONCESSIONARY UNITS 
AVAILABLE FOR TRANSFER 

Up to 30. specialist retail units available 
nationally for transfer to suitable applicant at 
- a reasonable negotiated premium. 

Priscfrols only apply Box H2834, Financial Times, 

10 Cannon Street, London, EC4P 4BY. 


SUPPLIER OF CONTRACT FLOOR COVERINGS 
TO THE TRADE 

National distribution costumer base. Turnover in. excess of £5.5 
- Million substantial profits considerable potential. Excellent 
accommodation and location in S.E gamine 
reasion tor sale. 

PrimdfctM o*Iy write tax H2831, Fmmmdal Ttmo, 

' 10 Cmxaom Street, Leadtm, EC4P4BY 



HANDBAG MANUFACTURING FACTORY 

Leather immft anwin twiiiy (a North Londc— for 1 ale, 

•with either lesse or freehold by negotanon 

The Factory is based in 3500 tq ft. fberory with aD ac cc a wu y oqnjpmcnt. Staff 
of IS tidDtd pemms arvadafaie winch win enable the p ui d ma to commence 
production tannediaidy. 

For details. Write Bax H2830, Financial Times. 10 Cannon Street, 

London EC4P4BY 


3S hUIMTLEY & PARTNERS 


COMPANY 
FOR SALE 

Steel Fabricators wefl embWied a 
Home Counties. Good easterner 
base: Turnover approximately 
: £275,000 per annum. 
Freehold pr op ert y . 




MAGAZINE FOR SALE 

Present turnover in excess of 
£K million per annum. Free 
Trade Publication. Under two 
years okL Growing quickly 

Writ* Sm H2JH2, Thmdd Urn**, 
1* Came Seed, Lesdm EC4P4BY 


ELEGANT 

BUSINESS 

in elqgam English provincial 
city oriental rag gaBery for sale 
owing to owners retirement 

Writo B«x H2S21. FlaaarM Hwa. 

.■ ia Stmt. L»S— . BC4P4BY 


SEVENOAKS, 
WEST KENT 

LoatoaUWicd (37 jtan> tow* ceatre 
ladies foperia and beach wear batiacn 
fcrwfa. F t t dl nit pMalei.iPoJ 
e — ta l l profit*. T/O £51.000 19*6. 
Ne- 12 Taarkaac: £5.750 per mum. 
Mrte»JiMpnMy 
ftwadd rntBtj SsrrfoM. 
Smwb <0732) 451211 





■ SPECIALIST SHEET METAL/DUCT MANU- 
FACTURER 

(South Coast) Turnover £550,000 Profit on A/ 

C’s £1000,000. Fixed assets £58.000 price 
for shares £275,000. Excellent Investment 
opportunity. 

■ HAULAGE CO HOME COUNTIES 

Turnover £434,000 prate on A/Cs £497,000 
Net assets shown £27,000. Price for shares 
£170,000. 

■ MODERN FUEL INJECTION CO MIDLANDS 

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*»%U 

.... M 


Financial ThnesTuesdayNovember 17 1987 



ARTS 


21 


Barbican Art Gallery/Susan Moore 


BBC Symphony/Festival Hall 


Less Edwardian pomp than circumstance 


Rarely has a poater summed np emjf's cihibition on their Plarrta- 


v , ' K' 


an exhibition so accurately, or 
the cover of its catalogue been so 
misleading. The poster advertis- 
ing. “The Edwantean Em: (at the 
Barbican until February 7)$aa 
monochrome mock-tip of a 
period illustrated . magazine, 
lered “ 


forebears. 'Edith, -in Ml. 
t scarlet, stands beside her 
father; thepresentlStr Sachever- 
ell/ now 90, Is playing on (he 
floor with toy soldiers. Nothing 
is said about- this extraordinary 
family, or about the roots of 
these images: in- the reassuring 



1 '•Ntsi 


V 


reform, and challenge the estab- tradition of!7thand 18th cen- 
Bshment,"-its largest Illustration toy ■■ • — 

is a photograph of the suffrag- 
ette Mrs Pefcmek Lawrence, one 
of the Holloway prisoners, distri- 
buting leaflets in 1909. On- the 
cover of the catalogue 2s a detail up. 
of Sargent’s dazzling 'The kiu 
Sitwell Family." Visitors antlci- 
paling an evocation of an opu- 
lent Golden Age of Souls, Satur- 
days-to-Mondays, Ascot and 
Cowes, will be' sorely disap-, 
ited. This view of Edwardian 


in Sacv nothing wa* explained 
at all, at least on press day. Few 
exhibits' wore labelled, 
one or two information 

At times it was Impossible to 
know exactly what one was 
looking at, or why it was there. 
0 did ask about an intriguing 
photograph of two dozen yotrng 
men holding babies, and was 
told that fc depicted- students of 



Dublin Maternity Hospital and 
ana is less aigars 'romp showed that Black, professionals 
Circumstance’ than Ethel did exist In Edwardian Britain.) 
Smyth’s ‘March of the Women* - one of the strengths of this 

exhibition - which Es . soon 


Samuel 


or the Black com; 
Colcrldge-Tayktr's " 

The exhibition begins, uncon- 
trovereially enough, with Ctiro- 
nation portraits of Edward VI 
and Queen Alexandra, and Fred- 
erick Morghn and Thomas 
Blinks's more informal outdoor 
of the Queen surrounded 



'1 1 - N L 
atE 


revealed t» be social history not 
ait historr - b- the. variety of 
ww tovr dff posters. 
. songsheets, oommemo- 
rative ware and other ephemera 
that organisers Jane Beckett and 
Deborah Cherry have unearthed 

to document their chosen 

_ grandchildren and dogs. Next themes. It is also one of its weak- 
comes Edwardian 'society,’ rep- — ... 

resented In a show that ciwirpc 
over 1,000 exhibits by only a 
handful of portraits - and even 
fewer painters. Given that the 
upper classes are so meagrely 
represented - and the vast num- 
bers of nouveau riche million- 
aires not at all - why 
with Sargent’B “The A 
ters" wfuch we have seen- oh so 
many times before? 

Why, too, has the exhibition 
designer attempted to recreate a 
sense of period interiors when 
the architecture and proportions 
of the Barbican galleries defy 



Wilf i Vii t >j f? I'Uri i- « PH, iff !.(} Wtf'f 


“Industrial Victims!” - a poster issued by the Labour Party 


The inherent drawback 
_ a broad range of 
is that the galleries can- 
not but look messy. The section 
On London, for example, Is a 
melee of etchings, underground 
posters, photographs, watercol-- 
ours, and architectural drawings 
it us of LCC housing, loomed over by 
***- Lund's vast painting •' Heart of 
the Empire* fa birds-eye-view of 
the, City), a 1904 Vauxhall Motor 
Car aha a replica of Bleriot's pio- 
neering aircraft. 

The other weakness b not- so 
much the choice of _ thanes but 
„ . .. their emphases; a' foregrounding 

such imaginative leaps? 'The of the background, if you like, 
Acheson Sisters* la virtually the JVe find a section on the labour 


- --V; 

l-.-> 


- ' ic: 


height of its papered waU, 
" ig inches away , from the 
concrete and glue coffered 
Giving the. galleries more 
than an interim; 
r’s showroom la hardly 
convincing compensation. . - 
Set . against the tapestries, fur- 
niture and porcelain -of Rente- 
haw, the Sitwells at home make 
fasdnatihg viewing - not least as 
a timely postscript to the Acad- 


and trades union movements 
devoted to Black politicians. In 
"Empire; Imperialism and Anti- 
Cokuilaitem* it is the Fan Afri- 
can Congress and Irish Home. 
Rule versus white supremacy 
and economic exploitation which 
is epitomised by the Delhi Dur- 
bar and-the unattractively super- 
cilious Governor of Malaya, Sir 
Frank Swetfcenham (again by 
Sargent). He definitely scores an 


own goal. 

Even Theatre and Music Hall* 
transpires to be less a joyful cele- 
bration of the great years of the^ 
atre building and legendary 
*1X12113" than a dreary account of 
The Actresses Franchise League, 
Black entertainers, and the 
Music Hall Strike of 1907. Later 
we learn of the hard lot of glean- 
ers and fishwives - all interesting 
stuff - but what about farm 
labourers and fishermen? 

The organisers aim to show 
the extremes of Edwardian 
Britain, great wealth and abject 
poverty, life In the e Sly and the 
country, Augustus John’s bare- 
foot women and children - 
unfeelingly entitled "Decorative 
Group' - Is a cruel contrast to 
Charles William Purse’s choco- 
late-boxy “Diana of the 
Uplands;," an aristocratic young 
women walking her greyhounds 
without a Care in the world. A 
romanticising, nostalgic view of 
the countryside emerged during 
the Edwardian era to blur the 
harsh realities of agricultural 
depression fits best witness Is 
"Country Life”). The land was 
seen to provide a wholesome 
way of life, and the countryside 


to uphold an old and stable 
social order. 

There are sections In the show 
on. agriculture, and back-to - 
nature experiments such as the 
foundation of the first garden 
city. Letch worth, in 1903 (a reac- 
tion against urban conditions 
associated with the vegetarian 
and temperance movements), 
and the establishment of various 
artistic colonies in the depths of 
the countryside or beside the sea. 
But there is little evidence of the 
country retreats - let alone the 
great country houses or Wren- 
aissance office' buildings - built 
by Sir Edwin Lutyens et al - or 
the romantic gardens designed 
around them by Gertrude JekylL 
The only country house I saw 
was John Kinross's Mellerstain. 
It te an appalling omission In a 
survey of Edwardian Ilf e - as 
Guy Dawber wrote in 1908, prob- 
ably more 'country houses were 
being built than at any tiihe 
since the days of the Stuarts. . 

'One of the more coherent and 
successful sections devised is 
that devoted to home and fam- 
ily. William Rothenstein's cosset- 
ted middle-class children in his 
marvellous "In the Morning 


Room" are encouraged to play 
and dress up - John is an Indian 
chief. No such luxury could ever 
have been conceived by the chil- 
dren who were forced into 
sweated labour. Could their 
mothers have understood the 
sentiments behind Gotch's iconic 
"Holy Motherhood”? 

The decade 1901-1910 was a 
watershed of the modem age. A 
technological revolution had 
brought about rapid and unsettl- 
ing change, and social and politi- 
cal unrest. Edward Vi's reign 
witnessed feminist campaigns' 
around sexuality and work, as 
well as votes for women; the 
labour and anti-colonial move- 
ments; arid "Bread for Our Chil- 
dren” marches. 

Jane Beckett and Deborah 
Cherry, admirably, have 
attempted to penetrate the 
romantic gloss and sense of 
stabiitv popularly attributed to 
the Edwardian era. Or, as they 
put it in the catalogue (which, 
incidentally, bears little relation 
to the exhibits), "a white, imperi- 
alist and patriarchal visual 
mythology.” what they have suc- 
ceeded in doing Is substituting 
one distorted view with another. 


cj-Mst 

Vi l-VVig 

• ' •' -C !Z 


fJ&flaw 


Don Quixote/Antwerp 






... 

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: : '4*t : **?/:: .. ’ : 

•agvsar 


■m : W 

mm 

t < 


...... 


Danilo Sadojevte 


Maria T 




<iei 


The Royal Bailee of Flanders has 
lately begun its 19th season at its 
home theatre, the Opera House 
in Antwerp. Founded in 1969 by 
Jeanne Brahants, .the company 
has toured extensively,, visiting 
(America.andrGluoa.anjd, in- 1960,, 
aflppearing^atjSajfler’sWelU.Mme 
Brabants was succeeded as- direc- 
tor by Valery Panov in 1984, and 
early this year the direction of 
the company was given to Rob- 
ert Denvers, who now starts his 
first full season in command of 
the ensemble. A former dancer 
with Maurice Bejart, and for the 
past decade a teacher highly 
respected in Europe and Amer- 
ica, Mr Denvers seems already to 
have made his mark upon the 
, company's identity. The perfor- 
mance of Don Quixote that I 
saw at the week-end in Antwerp 
showed a troupe youthful, eager 
in acceptlng the challenges of 
thepiece. 

This Don Quixote is Rudolf 
Nureyev’s account of the old 
war-horse, which he has galvan- 
ised into putting its best foot for- 
ward. The narrative, as we know 
from every current production, 
is an insult to Cervantes, as 
crazed in its illogicalities as the 
Don is in his dreams of chivalry. 

Nureyev’s solution te to accept 
the fact that the piece will never 
make cense as drama, but by 
stuffing it full of .dances he 
knows that the public, and the 
cast, will be kept so busy watch- * 
Ing steps that toe lunatic nature 
of the story can pass almost 
unnoticed. So it has proved at 


Clement Crisp 

Opera, ant 

on Saturday "‘ in Antwerp’s 
delightful late 19th century 
Opera House. 

The -production has been skil- 
fully adapted to : the Flanders 
Ballet’s forces of some sixty, 
dancers who must travel at 
home 1 and abroad for part of the 
year. There are simple, attrac- 
tively literal sets by Roger Ber- 
nard in collaboration with Alain 
Vaes, and deUdora costumes in 
reds, mauves, magentas, by 
Anna Anni, which give the ballet 
an added liveliness of aspect. 

Foolish though Don Quixote's 
action may be. the Flanders cast 
take to it with unabashed zest. 
They look alert, and the first 
act’s pimento-flavoured capers -' 
the ballet la here really a danced 
zarzu el a - are as lively as one' 
could wish. I saw the heroine, 
Kitri, interpreted by the Ameri- 
can dancer Marla Teresa del 


She will, I hope, learn to flirt 
even more with the dance - after 
the manner of Maximova, Makar 
rova and Semenyaka, who show 
that it is all a huge joke that 
can share with us and their 
- and enjoy Kitri as cham- 
ratiwr than some rougher 
h vintage. 

Her partner was a guest from 
American Ballet Theatre, Danilo 
Radojeyic, who has the bright 
bravura for BasQio'a variations • 
and Nureyev's staging is writ 
large with its creator's delight in 


doubling and re-doubling the 
hurdles the danseur must over- 
come. Radojevic sails through 
each devilish moment with 
insouciant gaiety, and I also 
admired the panache of Pierre 
Bos as Espaaa ixi partnerahip 
with the fetching. Michele Gpy- 
ens as the Street DanceL 

To hold the middle act 
together needs the grandest 
resources of a big company, so 
that the gypsy scene has the 
right raggle-taggle abandon and 
the academic predictabilities of 
the dryad sequences! 
ily assured. The 
era make good sense of these 
incidents: Edwin Mota, on whose 
exceptional graduation perfor- 
mance at the School of American 
■Ballet I reported three years ago, 
whiplashes through the gypsy 
-encampment with plenty of tem- 
perament, while the dryads are 
neat, if not especially gaudy in 
style, and weQ-discipluied. 

The last act la well done by Its 
principals and by the company, 
albeit Kitri ’s demure white cos- 
tume is the one dull outfit on the 
stage - she seems as if she is 
going to her first communion 
rather than her wedding. The 
dancing is joyful, without too 
much tinsel to make the finale 
look more Brummagem than 
Barcelona, and Minkus enduring 
tunes and the dancers' fireworks 
cast their familiar merry spell 
over the public. The staging nas 
encouraged the company to 
work happily, and they have 
responded nappUy to it. 


With Shostakovich very much 
the flavour of November on BBC 
television, the BBC Symphony 
Orchestra’s Festival H&U concert 
on Sunday evening followed the 
fashion with a performance of 
the Fourth Symphony. The con- 
ductor was Richard Buckley, and 
he prefaced the symphony with 
two American works, Samuel 
Barber's violin Concerto and the 
first British performance of the 
Fantasia on an Ostinato by John 
Corigllano. 

CorigUano's standing is high in 
the United States at present; he 
is currently convposer-ln-resi- 
dence with the Chicago Sym- 
phony Orchestra, and nis works 
are gaining many performances 
across the continent. The reasons 
for that success are both under- 
standable and uninspiring: Cor- 
igliano writes music of edeoic 
attractiveness, professional 
accomplishment and minimal 
substance. 

The Fantasia demonstrates 
that well-calculated melange 
painfully well. The ostinato of 
the title Is that from the second 
movement of Beethoven's Sev- 
enth Symphony; though it is 


Andrew Clements 

quoted literally on several occa- 
sions, and brought back with 
wearisome predicta Wity for the 
closing pages of the work, it 
functions as little more than a 
peg on which to hang a sequence 


for a well-turned texture but lit- 
tle else. 

In the Barber concerto the 
soloist was the BBCSO's co- 
leader Rodney Friend, and both 
he and Buckley seemed ke6n to 
play down the work's frank 
romanticism and emphasise 
instead its neoclassical traits. 
With thinned, brittle textures 
and tight-clipped rhythms It 
seemed a good deal closer to the 
perky. New Deal populism of the 
late 1930s that composers like 
Copland purveyed then, and less 
a late and highly personal flow- 
ering of the European concerto 
tradition. But in Americanising 
the work it lost a mod deal of its 
expansiveness; the net result 
suggested a diminution rather 
than a reassessment. 

Reassessment has become a 
constant element in the reputa- 


tion of Shostakovich’s Fourth 
Symphony. Tarred by the same 
Stalinist brush that destroyed 
Lady Macbeth of Mtsensk, tc 
went unperformed until 1961. <£> 
years after it was written, and in 
the concert hall has never really 
attained secure status in the 
Shostakovich canon. Buckley's 
account - well prepared, care- 
fully plotted - was not the major- 
act of vindication the work per- 
haps deserves, but it served as 
another reminder of the sharp 
vision of Shostakovich's music of 
the 1930s, and how the expres- 
sive elements that were to Min 
offical approval for the Fifth 
were present in nascent form In 
its predecessors, though "just 
criticism’ might have hastened 
their refinement. The striking 
features of the Fourth - the 
boundless Mahlerian marching 
of the first movement, the 
haunted coda to the finale, and 
the massive tragic scale of the 
whole ambitious structure - 
remain undeniable however, and 
the BBC Symphony's realisation 
of them, led by high-profile wind 
solos, conjured a gripping and 
involving pageant. 


Takacs Quart et/Wigmore Hall 


It was Neville Cantos who sug- 
gested that performances of 
Schubert’s C major String Quin- 
tet should be annually rational, 
so that Its unique greatness 
should not be devalued. At pres- 
ent, however, it is Schubert’s D 
minor String Quartet which te in 
need of some control, for almost 
every string quartet that visits 
the Wlgmore Hall seems to feel 
the work offers the best possible 
exposition of its particular tal- 
ents. The latest to do so is the 
excellent Takacs Quartet, whose 
praises have often been sung on 
this page; 'Death and the 
Maiden* made up the second half 
of their recital on Saturday even- 
ing. 

The Schubert proved to be the 
least impressive element of the 


Andrew Clements 

recital, though it was deficient 
only by the exceptionally high 
standards set by the earlier per- 
formances. It is hard to remem- 
ber an account of Bartok’s Sixth 
Quartet in the concert hall that 
encompassed so many of the 
work’s complex of facets, that 
realised the biting satires of the 
central movements as pungently 
as it charted the growing Inten- 
sity of the Mesto introductions, 
and that controlled the thematic 
dux of the first movement as 
surely as it directed the lingering 
regret of the finale. 

Tn Beethoven's C minor Quar- 
tet Op.lS no. 4 the bracing combi- 
nation of ensemble - 

spellbinding ch or ding in the 


Inner parts! - and buoyant, 
fresh-minted phrasing gave the 


music-making a constantly 
renewable fascination. The Tak- 
aca evidently takes no purist line 
on the question of repeats - in 
the Beethoven they were minim- 
ised, perhaps even under-used in 
the scherzo, and neither outer 
movement of the Schubert took 
the exposition reprise. Whether 
greater length would have pro- 
vided that work with more 
cumulative force 1a debatable; 
the Takacs' tempi were never 
slow, and a sense of shape 
always informed their playing, 
but their grip on the drama of 
the first movement was never 
tight, and the virtuosity in the 
finale was almost consciously 
suppressed. Tragedy reflected in 
tranquillity is not quite enough 
in this work. 


Mikhail Pletnyev/Wigmore Hall 


ivev, 

Chaikovsky Competition, 

returned to London a year ago 
after a long absence, and won 
glowing praise for the brilliance 
and fine finish of his piano 
playing. He Is bade here for a 
round of recitals and concerto 
performances, and will no doubt 
continue to arouse enthusiasm. 

He deserves to. It fs indeed a 
rare pleasure to encounter such a 
formidably equipped pianist. The 
best of his Sunday afternoon: 
recital had that proud surge 
peculiar to the grandest Russian 
playing. In a dosing group of 
Rakhmanlnov Op-23 Preludes, 
for instance, the Dig B flat was 
given an irresistible clarion bold- 
ness, scaled and delivered with 
authentic virtuoso freedom. The 


Max Loppert 

sheer ‘school” of Pletnyev*s fin- 
gers, the variety and careful 
adjustment of weight and touch, 
elicited their own admiration - 
the half-staccatos, each one 
immaculately placed, in the 
opening bars of the woLdstein 
Sonata or the superbly dear 
vofoing of chord sequences In 
Debussy's Pour le piano were 
among the many tokens of tech- 
nical excellence that one duly 
and properly relished. 

There was, however, a strange 
'and at' times disquieting dispar- 
ity to be sensed between the 



Imagination, 
nyev’s Beethoven reading was of 
curiously indeterminate charac- 
ter, super-streamlined but essen- 


tially neutral; one had no Idea 
what he felt about the music, 
whether indeed he felt anything 
at oil about ft. (The refusal to 
obey Beethoven’s pedal markings 
in the finale was both revealing 
and disappointing.) The intimate 
inner movements of Schumann's 
Faschingsschivank aus Wien 
passed by with hardly a note of 
affectionate recognition. 

It was as though Pletnyev har- 
bours an abiding suspicion of 
romantic gesture or rhetoric The 
cool eloquence and beauty of his 
playing reinforced 'the 
in - this was music per- 
fectly attuned to his fingers and 
imagination alike, and its perfor- 
mance was breathtaking It wfll 
be interesting to see and hear 
how this remarks We young pia- 
nlst develops. 


The Island of Doctor Moreau/York 


Liz Brailsford's adaptation of 
Wells's novel has avoided the 
temptation to put any post- 
Wellsian politics into it and 
make Moreau a proto-Stalin or 
Hitler. She has kept firmly to the 
book, and her doctor's horrid 
practices of vivisection and hyp- 
notism, used to turn wild crea- 
tures into imitations of human- 
ity, are aimed only at 


B.A.Yotmg 

Escreet) at one end, and an 
enamel wash-basin on the floor 
in front of them. We are then 
precipitated into a smoky ship- 
wreck where the crew rely unex- 
pectedly on lines from The Tern- 


production at the Theatre 
Royal, directed by Andrew 
McKinnon, Is hi one act 90 min- 
utes long It Incorporates, the 
main events of the novel, but 
has to hurry over them a little. 
The lights go up on a fine of 
respectable Victorian scientists, 
the narrator Prendick (Stefan 


6 Arts guide 


November J3-J9 


: ui 

ni 


Music 




Royal Opera Covent Garden. Far- 


has progressed from an austere 
abstraction to a more winsome the- 
atrical expression. Theatre de la 
Ville (42742277). 

Dcaoarfc’i Royal Ballet produces 
La Syiphide with lb Andersen at 
the Theatre des Champs Ely sees 


Franco ZemreUTs production of La 
.Boheme conducted by Julius Rudd 
with Roberta Alexander and Brian 
Schnexayder, Otto Schenk's pro- 
duction of Die Waikuere, conducted 





fining the first to be pres- 
ented in this house. Georg Solti con- 
ducts, and the cast Includes Magda 
Nador, Deem van der Wait, Lillian 
Watson, and Kurt Moll as an incom- 
parable Qsmin. 

SnftUsh National Ooetn Coliseum. 
The latest Jonathan Mffler produc- 
tion for the ENO is a new Barber of 
Seville, a much needed renewal of a 
house staple. Della Jones, Britain's 
leading Rossini mean, heads a cast 
including Patrick Power. Alan Opie, 
Rodney MacantL and John Ccnndfc 
Mark Elder conducts. Abo te reper- 
tory are further performances of 
the latest revival of Mute's Mafia 
style tUgdetto, whh John RawnsJey 
returning to the title tote, and of 
the lusicaQy stylbh, dramatically 
disappointing newPeari Fishen, 
redeemed by Btat's beautiful score 
and the ercdienl ringing erf Valerie 
Masterson , Adrian Martin, -and 
Anthony Michaels Moore. 

Royal Ballet Royal Opera House, 
Cavem Garden. A Stravinsky triple 
bill on Friday with Bernard Haitink 
conducting ’The Dream”, “Gaten- 
teries" and "The Concert” are at 
matinee and evening on Saturday 
and then "Swan Lake" Japerfonued 
on Tuesday. ^ 

London Contemporary Dance The* 
atre Sadler 'swab, Rosebeny Ave. 
The autumn season starts with per- 
formances of Robot Cohan • new 
"The Phantasmagoria*. 

PARIS 

Trisha Brown Dance 
Starting from the 
son Church" studio, 


47203637). 

—Had nowright 

if Bellini’s Nora 


Norms, tragic 
Luigi Pizti new pro- 


Brown 


romantic Pier — ^ - — re- 

duction. A lte r nate s as before wun 
Magnificat at the Puis Opera 
(47425371) 

peter Maxwell Davies’ Cinderella 
turned into an exploited au pair 
In an "Opera Jeune Public" 


NETHERLANDS 

Schevemtautea Circus Theatre. Swan 
Lake, with the Ballet and Orchestra 
of the Prague Opera (Mon) 
Amsterdam Muziekth eater. The 
National Bidi** company with the 
world premiere of a new Met by 
Toer van Scbayk, Diamonds (Tchal- 
ltovsky/Balancbine) and Vier 
letzte Lieder (Bfcmuss^an 

Wed, Thur) Doniastb'S Don 
lie performed by the Nether* 

Opera directed by Renata 

Aekermann; Bmno CwapanriJa 
conducting the Netherlands Phil- 
harmonic, with Benk Smlt, Chns-. 
- tine Bazbaux, William Shimdl end 
SSffimBSCTue^CSSB-gB) 
Etodkorat, , SchOOwW The 1 
-. Ballet ofhandere with Ue and 
Girl (Thur) (11. H 22) 

NEW YORK 

HttMMUtia Opera. Fabriado 
Mdanrts new production of n Tre-' 
: vaooee highlights the week Richard 
Bocynge conducts, with Joan 9uth- ' 
eriand, Ptorenre Cassette and Lud- 
ano Pavarotti. Continuing are 


prod action of Trees, conducted by 
Christian Badea wHn Eva Marion, 
Sherrill Mllnes and halo Tajo. Lin- 
coln Center (Opera HouseX 38 2 


New fork City Opera. The final 
production of the season is a double 
bill of Hosarf ■ The Goose of Cairo 
and Oliver Knussen's Where the 
Wild Tilings Are. Lincoln Center 
(8705670) 

Joffirey Ballet, The month long 
schedule has three premieres 
including a Robert Jeffrey Nut-, 
cracker, Nijinsky's Le Sacre de 
Piitaemps and Three Preludes by 
Ben Stevenson set to Rachmam- 
. noff. along with Frederick Ashton's 
La FTUe Mai Gardee and nearly two 
dozen repertory favourites. Ends 
Nov 22. City Center S&th e. of 7th 
Av. (947 58580) 

New Tork City Ballet. Highlights of 
the three month winter season 
indude the return of George Balan- 
chine's three act Jewel as well as 
Bogafcu, Divertimento, Raymonds 
Variations and Symphony in C; Jer- 
~ orae Robbins' Plano Pieces, The 
fla gf and The Concert and Peter 
Mantes' Ecstatic Grange. Ends Feb 
2L Lincoln Center (4960600) 
WASHINGTON 

Washington Opera. Madame Butter- 
fly conducted by Guido Ajmone 
Nn with Yoke Watanabe te the 
title rrie joins Romeo et Juliette 
' 'conducted fay Cal Stewart Kellogg^ 
featuring Angela Maria Blast and 
NeQ Wilson in the title roles. Ken- 
nedy Center (Opera House} (864 


ITALY 

Rome. Autumn, season opens, with 
Rimsky -Korsakov s *La Sposa dello 
Zar" conducted by Mstislav Bostro- 
povich and directed by Galina Vb- 
nevskaia, with scenery and cos- 
tumes by Zack Brown. The case 
includes Lajos Miller, Stevka 
Mineva, Dimitar Peticov ana Vtaces- 
lav Poiosov. (Tues and Tnurs) 
(46.17.56) • 

Bologna Testrp Com un ale. Season 
opens with a new production by 
Pierluigi PieraBi of Wagner's Das 
Rhein gold, sung In German by Her- 
mann t bt, Anne Gjevang, James 
Johnson, Helmut Pam ouch and 
Hermann Winkler, conducted by 
Peter Schneider. (Tues, Thuraj 


Borne Teatro Ohm 
son te "Solo* 


raphy by Carolyn .Carlson and 
Musjeb^r Rene Aubry (Wed, Thurs) 


WEST GERMANY 


Berlin Deutsche Open 
ballet 
Erhard 

anniversary of Berlin, will have its 
world premiere this week. Choreog- 


eutsche Open UchticnalL a 
specially composed by 
Orosskopf for the 750th 


Stattgart Winttember^sdiea Suat- 
stheeter. Otello has Gabriele Benac- 
kova, Vladimir Allan tow and 
Roland BrachL Die Entfuehrung 
aus dem Serai] stare Krissdna Laid, i 
Marianne ffirsti and Helmut Berger. 
Die Solduen with Nancy Shade, 
MUagro Vargas, Grace Hoffman, 
IQaus Hires and Raymond Woten- 
alcy in a Hairy Kupfer production. 


Florence Pksojo Teatro. Two ballets, 
performed for the first time this 
season H Buff one" by Egon Mad- 
sen, to music fey Prokovvev, and 
"Six Characters in Search of an 
Author" by Orezfo Messina, based 
on the Pirandello Play with Music 
bjMRespighi (Sun, Tues, Wed, 

Turin Teatro Hagio. Wagner's Siegfr- 
ied conducted fay Zoltan Pesko and 
directed by Gianfranco de Berio, 
with sceruuy by the Hui 

designer At . . 

tumea by Zanuwmi Call 
German cast Inducts Gerd 
neis, Graham Clark, Boris Bakov, 
Otrun Wenta! annul Anne Evans 
(Sun, Thurs) 


Trieste Teatro Coqnnude 
Verdi- Pietro Mascagni's "L7 
Fritt" to Us lint performance here 
• for over aO yean. The conductor is 
the young Italian Evdlno PIdo and 
the director is Mario Zanaotu. in 
the cast are soprano Cristina Rubin 
and Pietro Brito (Fri, Sun, Wed) 
(831948) 


__ . Bell, 

Katalene Bors boom, Raffaella 
Renzl, Yannick Boquin, Tomas 
Erdosi, Lubomir Kafka and Jan 
Vandeloo. Der Flkgende Hollander 
features Jania Martin, Bengt Rund- 
gren, Toni Kramer and Robert Hale, 

Hamburg Staatsoper. Don Pasqualej 
a Frans Marijnen's production with 
the cast including Hellen Kwon, 
Paolo Montarealo, Urban Malm berg 
and Kurt Strait, The Marriage ta 
Figaro brings Linda Plech, Chris- 
tina Hogman, Deborah Masse!!, Ger- 
trud Hoffszedi, Thomas Lander and 
Ralph Houston together. 

Frankfurt Opera. John Cage's operas 
Europem 1 and 2 will have Its 
premiere this week. He will also be 
the producer. In the main parts are 
Harolyn BlaekwdL Mlchri Shamir, 
Eliane Coelha, June Card ana 
Seppo Ruohanen. Abo in the reper- 
tory Iphlgenie in Aulls and iriii- 
genie auf Tauris, and Cod ran 
Tutu, all conducted fay Gary Ber- 
tirtL 

Cologne Opera. The week starts with 
two Puccini opera* E!ne Florentin- 
ische Tragodi e/Gianni SchicchL 
Also Pique Dame with Nadine 
Secunde. Josef Protschka and Wotf. 

• gaii Schoene. Die Zauberfloete 
rounds off the programme. 


Have t > our 
I . i . hand 
ddivered . . 


• -at oo extra charge, 
if you work in the 
business centres of 

Madrid 

Barcelona 

Bilbao 

Sevilla 

0 


Madrid 

(01)7339548 


And a* IPS (hr 


„ FINAW CIAt TIMES | 

ttrri : \i glm I I'.Swiy Mr i I n""il — 


When the storm has 
Prendick is a castaway, the sm- 
entista have become ragged, mis- 
shapen half-humans, dressed in 
rags devised for them by 
designer Don Alderaon, who has 
also dressed the stage in atmo- 
spheric green triangles, and the 
real tale begins. The wash-basin 
is used by a disobedient half-hu- 
man to lap water from, when he 
knows that "not to suck up 
water” is one of the master s 
laws, like “not to go on all fours.” 
If you break the laws, you go 
bade to the house of pain, the 
bush surgery where Moreau 
(Geoffrey Banks, clinging to a 
frock-coat) performs ms experi- 
ments. 

We are given a brief sight of 
one such experiment, that has 
long been painfully audible - a 
puma strapped to a globular 
metal frame and already almost 
man-shaped under Its bloody 
bandages. But there Is trouble 


among the more wholly com- 
pleted, when the remains of a 
half -eaten rabbit are found, 'not 
to eat flesh or fish” being part of 
the law. The culprit, converted 
from « leopard, reverts to sav- 
agery. Only lethal action by 
Prendick and Moreau's drinking 
assistant Montgomery (Colin 
MacLeilan) prevent a rising. 

And then the puma, after 
reluctantly doing some tricks far 
Moreau ("Walk; Talk”) kills him. 
From there on, reversion is Inev- 
itable. Montgomery gives the 
creatures some of his whisky and 
joins them In pandemonium. 
Prendick survives this for nine 
months, is rescued, and believed 
mad. 

It would be wrong to think 
that this production aimed at 
anything but excitement, and 
there it certainly succeeds. Three 
rows behind me were packed 
with teenagers, the kind you sel- 
dom see at th e atres, and they 
were quiet and attentive all the 
time. That alone justifies the 
evening; but it is not for teenag- 
ers only. There are quotations 
from Darwin and Huxley in the 
programme that may indie 
some lines of thought. 


idicate 


Saleroom/ Antony Thomcroft 

Good prices for science 


Sotheby's claimed that its sale of 
scientific instruments yesterday 
was its best ever, and so it 
proved. This is still a restricted 
market, dominated by dealers 
but with keen private collectors 
especially In the US and on the 
continent It was two continental 
buyers who set the pace, one 
paying & 181 , 600 for a rare object 
made In Prague in 1697 by 
Eramsus Habermel. This was 
more than double the previous 
best auction price for a scien t ific 
instrument. 

The object was a gilt and brass 
combined astronomical compen- 
dium and book binding. In 
own ra* it combines all the rele- 
vant astronomical information 
available at the time with the 
scientific instruments, such as a 
compass, needed to make the cal- 
culations, These are envbeded in 
the book binding. The top esti- 
mate had been 560,000. It had 
been in the collection of the late 
Rudolf von Gutmann. Also from 
hfs collection was a gilt brass 
and ivory diptych dial made by 
Paul Refiunan in Nuremburg in 
1606. This was also used to teQ 


the time and carried a top esti- 
mate of £8,000. But two collec- 
tors were desperate to acquire it 
and the price soared upwards to 
£57,200. 

Perhaps the most beautiful 
item at the auction was a silver 
and gilt brass universal equinoc- 
tial dial made around 1715 by 
John Rtiwley, who was the Mas- 
ter of Mechanics to Xing George 
I. When the King journeyed to 
his forms' home m Hanover the 
dial would enable him to record 
the correct time in the towns he 
passed through on the continent 
In effect it was a portable sun- 
diaL It carried a top estimate of 
£60,000 but went to another con- 
tinental collector, in fact the one 
who bought the Reinman dial, 
for 558,200. 

The New York salerooms fin- 
ished their busy week selling off 
Impressionist and modem art on 
a high note. There may be more 
reluctance after the global stock 
exchange foil to buy expensive 
oils which are not quite of the 
highest quality but demand for 
watercolours, drawings and, in 
particular, prints is outstanding. 







22 






Financial Times Tuesday November. I? 1987 


FINANCIAL TIMES 

BRACKEN HOUSE, CANNON STREET LONDON EC4 P4BY 
Telegrams: Rnanfimo, London PS4. Telex: 8954871 
■feteptwne: 01-248 8000 


Tuesday November 17 1987 


Rules for the 
global market 


operai 

between securities market regu- 
lators has been making steady 
progress In the past few months 
only to be suddenly confronted 
with a whole new set of prob- 
lems following the crash of the 
global equities market. 

In one sense the process of 
globalisation has received a 
sharp setback because the shock 
- and uncertainty have caused a 
widespread retreat by investors 
to their domestic markets. Mean- 
while, the regulators themselves 
are diverted by their own 
national priorities. In the US, for 
example, the Securities and 
Exchange Commission is mount- 
ing an investigation into the 
crash. In these circumstances, 
long-drawn-out global regulation 
issues are bound to be set on one 
side. 

But it would be unfortunate if 
the delays were to be severe, 
because the Infrastructure of 
global markets continues to exist 

- indeed, it is still developing fast 

- and activity will pick up again 
as confidence is restored. So it 
was encouraging that highly pos- 
itive notes were struck in Lon- 
don last week by two key regula- 
tors - Mr Joe Grtindfest, one of 
the five Commissioners of the 
SEC, and Mr Francis Maude, the 
Trade and Industry Department 
minister most directly concerned 
with securities market regula- 
tion. 

The strident tone which 
tended to feature in SEC pro- 
nouncements on international 
issues a few years ago was 
entirely missing from Mr Grand- 
fest's speech. The preoccupation 
with Swiss banking secrecy and 
UK blocking legislation has been 


understanding.” The exchange of 
information has become a 
two-way process, highlighted by 
the SEC's role in the investiga- 
tions leading to the Guinness 
prosecutions. 

Next milestone 


Roughly mmllwr 
ave been a 


have Been constructed 
the US and both Canada and 
Japan, and Switzerland has 
entered into rather more 
restricted assistance agreements 
regarding insider trading and 
other criminal matters. Mr 
Maude outlined Britain's prog- 
ress in signing such agreements 
with other countries - Including 
Japan last May - and a second 
generation of memoranda of 
understanding is being prepared 


which will involve the new regu- 
latory layers being established 
under the Financial Services Act 

The next milestone, due in 
February or March next year, is 
expected to be the third meeting 
of the "Wilton Park* group, an 
informal conference of interna- 
tional regulators. The aim will be 
to exchange views and explore 
the possibility of extending and 
enhancing the various bilateral 
agreements. Beyond that, it 
would be logical to expand the 
memoranda and treaties into a 
proper multilateral agreement. 
But national laws and re gul atory 
systems are so different that pro- 
gess to this level is bound to be 
very slow. 

Yet the recent crash may have 
the effect of concentrating the 
minds. It will both add an ele- 
ment of urgency and serve to 
divert attention from the head- 
line-grabbing criminal cases - 
however useful these may be in 
putting international regulatory 
co-operation on the map - 
towards more bode questions of 
solvency and orderly trading in 
securities markets. 

Major distortions 

By the late winter the scale of 
the damage caused by the vio- 
lent market movements during 
October will have become 
clearer. There will be better 
formed views of the role of com- 
puterised programme trading in 
exacerbating the collapse and of 
international securities traders 
in transmitting it around the 
globe. 

It win never be the job of regu- 
lators to prevent markets fluctu- 
ating but they have a duty to 
find out whether the recent 
events were wholly extraordi- 
nary, or whether the sophisti- 
cated global trading markets 
have a built-in tendency to wild 
swings. 

If so, the systems and the secu- 
rities firms will have to be made 
sufficiently robust, which will 
involve much tougher capital 
adequacy requirements than 
those imposed up to now. This 
will involve dose international 
co-operation, given that any 
divergencies between major cen- 
tres in these matters would lead 
to major distentions of the pat- 
tern of trading. 

The Cooke Committee of bank 
supervisors was set up partly in 
response to the wave of bank 
failures in the mid-1970s. Co-op- 
eration by international securi- 
ties market regulators needs to 
anticipate rather than follow 
events. 


Franco-German 

co-operation 


TT IS EASY to be sceptical about 
the latest institutional moves by 
France and West Germany to 
intensify their bilateral eco- 
nomic and defence co-operation. 

The creation of joint minis- 
terial committees to co-ordinate 
economic and defence policies, 
announced at the end of last 
week’s Franco-German summit 
in Karlsruhe, is intended to give 
the impression of breaking new 
ground. Yet the framework for 
close co-operation between Paris 
and Bonn, the Franco-German or 
Elysee Treaty, has existed for as 
long as 25 years, and has pro- 
vided for regular summit and 
ministerial meetings in all areas 
of bilateral relations. 

Why, in that case, is it consid- 
ered necessary to create yet more 
bilateral institutions, particularly 
at a time when it can be argued 
that energies should be devoted 
to co-ordinating policies at a 
European Community level 
rather than between only two 
members, however Important? 

The answer is to be found in 
the deeply-held conviction of 
both governments that a close 
Franco-German relationship is 
an essential precondition of any 
effective common European pol- 
icy and that recent economic 
and defence developments call 
for urgent joint action. 

Strong echo 

The steps for a greater coordi- 
nation of policies taken at the 
Karlsruhe summit are a response 
to what are perceived by the two 
governments as a growing gap 
between US and European Inter- 
ests, Both Paris and Bonn have 
been critical for a long time of 
Washington's failure to bring the 
US budget deficit and balance of 
payments under control and 
have put much of the blame for 
the recent stock market crash on 
the US Administration’s policies. 

Similarly, the traditional 
Gaul) 1st view, espoused by suc- 
cessive French governments, 
that the US cannot be relied on 

indefinitely to assure the defence 
of Europe, has recently found a 
strong echo in West Germany. 

The imminence of a medium- 
range nuclear missile deal 
between the US and the Soviet 
Union and the fear that Ger- 
many would become the main 
battleground of any conflict 
fought with tactical nuclear 
weapons has provoked feelings 
of bitter disappointment with 
Washington's policies among 
conservatives in Bonn. 


factors pro 1 
political and psychological incert-. 
tive for greater co-operation 
between the two main continen- 
tal European powers which is 
not difficult to understand. What 
Is less obvious is whether any- 
thing very tangible can be 
achieved as long as the funda- 
mental economic and defence 
policies of France and West Ger- 
many are still as different as 
they are at present. 

Defence doctrines 

In the economic field, the Bun- 
desbank and the Bank of France 
set a useful example of co-opera- 
tion quite recently when they 
made co-ordinated interest rate 
adjustments to keep their cur- 
rencies within European Mone- 
tary System margins. 

However, these are technical 
decisions for which the central 
banks do not need another spe- 
cial committee. What will be 
much more difficult to settle Is 
the argument over basic eco- 
nomic philosophies which, as 
often as not, has found Paris 
ranged with other industrial 
countries in the camp urging 
West Germany to adopt more 
expansionary policies. 

The gap between the defence 
policies of the two countries is 
even wider. It is all very well 
establishing a joint Franco-Ger- 
man brigade but it can never be, 
employed effectively until Paris 
ana Bonn have reconciled their 
defence doctrines- 

West Germany's membership 
of Nato and Fiance's indepen- 
dent national defence policy 
have created an imposing obsta- 
cle to any integrated military 
activities. 

Yet the practical difficulties 
that lie ahead should not be 
allowed to detract from the polit- 
ical determination shown by the 
two governments to co-operate 
in dealing with the new prob- 
lems created by the stock mar- 
kets' crash and the projected 
Euromissile agreement 

President Mitterrand has 
stressed that he considers the 
reinforcement of the EMS as one 
way of increasing Europe’s cohe- 
sion and weight in international 
affairs. That is a political consid- 
eration which the UK Govern- 
ment should also have in mind 
when deciding on whether to 
join the European exchange rate 
mechanism or any European col- 
laborative military venture. 


The stock market has dealt a blow to popular capitalism in France. Ian Davidson, Paul Betts 
and George Graham say it has also changed the ground rules for next year’s presidential election 


WITH characteristic Gallic flair, 
the French are turning the inter- 
national financial crisis into a 
drama all their own. 

Mr Jacques Delors, president of 
the European Conunission, has 
scandalised his Socialist friends 
by offering himself on a popular 
French television chat show as a 
possible Prime M inis ter under a 
right-wing President. The leaders 
of the feuding factions of the 
country’s right-wing majority 
have used the crisis to blast 
invectives at each other. One 
normally staid business publica- 
tion advertised its latest issue by 
plastering posters around the 
Finance Ministry, housed in one 
wing of the Louvre, with the 
question: "Demain la Recession?* 
in big black print. 

On the surface, the interna- 
tional stock market crisis has 
affected France no worse than 
any other major industrialised 
country. But in political and cul- 
tural terms, the repercussions 
are already looking much more 
serious, with the opening up of 
major rifts, not merely between 
the main political parties, but 
also between the business com- 
munity and the political estab- 
lishment 

like any other western admin- 
istration, the French Govern- 
ment is worried that the crisis 
will cause an economic slow- 
down. But Us anxiety Is all the 
more acute because, after 18 
months of uneasy cohabitation 
between a Socialist President 
and a right-wing Government, 
France is test approaching the 
test of a new presidential elec- 
tion next May. 

What makes this combination 
of circumstances so sensitive in 
France is that it is not just a 
familiar conflict between tradi- 
tional left-wing and right-wing 
political parties. It is -in. some 
degree a debate over France’s 
recent conversion to an untradi- 
tional free- market economic phi- 
losophy which began under the 
previous Socialist Government 
and has been further strength- 
ened under the Government of 
: Jacques Chirac. 

For the moment, the Govern- 
ment is sticking categorically to 
its commitment to a free- market 
philosophy. But the business 
community is clearly becoming 
increasingly worried that the 
politicians may still be out of 
step, that their instincts are still 
interventionist and that the pres- 
sures of the crisis could yet drive 
them bade towards the old ways. 

Baron Ernest Antoine .Seflliere, 
chairman of the CGIP industrial 
holding group, says: "It is the 
— iliticians who are lagging 
hind the times. The crisis is 
not so much the product of the 
economy, as of politics. The 
French world of business has 
become the accuser: we are 
undergoing a crisis of adoles- 
cence and the politicians can 
make the situation worse." 

Part of the reason for the 
industrialists' fears is the severe 
blow dealt by the stock market 
collapse to confidence in 
France’s still immature popular 
capitalism. This began with the 
Socialists' deregulation of finan- 
cial markets and floated appar- 
ently irresistibly upwards with 
the right-wing Government's pri- 
vatisation programme. 

A new generation of 6m small 
investors deserted their savings 
accounts, at first for unit trusts 
and then for direct sharehold- 
ings in privatised companies. 
Until three weeks ago this 
looked, despite routine words of 
caution from Mr Edouard Bal- 
ladur. Finance Minister and 
architect of the privatisation pro- 
gramme, like a tone- way ticket to 


STOCK MARKET 



Trying to 


of ttw cottte Edaoard BMKiw, Jacques Chirac and Raymond Bm 


Scattering in 
search of cover 


easy money. The slide in share 
values must have jaded popular 
enthusiasm for the equity mar- 
ket and many of France’s new 
shareholders may now.be won- 
dering whether they were 
to trust the Government's 
sophical prospectus. 

Ironically, the French econ- 
omy and business in general are 
in better shape today than they 
were five years ago. Inflation has 
been reduced to 3.1 per cent on a 
year-on-year basis and wage 
costs are now under much better 
control. All sides are Weed that 
in crude cost terms France has 
become more competitive even 
with West Germany, the bench- 
mark for traditions! French eco- 
nomic anxieties. French indus- 
try, whidh in the past has seized 
on aiTnnwt any trios as an excuse 
for a devaluation of the franc 
against the D-Mark, has joined 
the consensus that no currency 
is economically jus- 


A1 though the trade deficit 
remains one of the weak ele- 
ments of the economy and is 
expected to deteriorate further 
with a deficit of more then Ffr 
30bn (S2.97bh) this year, there is 
general agreement that the defi- 
cit is essentially a product of 
booming Imports, especially of 
capital goods, rather than of 
uncompetitive exports. Indeed, 
France has improved its overall 
competitive_position in the 


OECD, overtaking the UK last 
year, according to a recent inter- 
national survey.. 

The reason far this Improve- 
ment is a marked change in 
French business attitudes and an 
increasingly international 
approach to the market place. 
There was a time when French 
companies relied on the govern- 
ment and on at least an dement 
of protectionism to guarantee 
their pro sperity : not so long ago 
France was still talking of "the 
organisation* of the European 
Community's internal market, 
which was just another way of 
calling for a different sort of pro- 
tectionism. Those times are now 
past. 

French business has increas- 
ingly come round to the reaBsa- 
tkm that the old recipes of dSri < 
gtsme no longer work. The' 
French Government is no longer 
master of the situation,” sayr Mr 
Bernard Pagery, chairman of th»- 
Compagrvie du Midi, the insur- 
ance and industrial holding com- 
pany. The world will be built 
according to AngloGaxon norms 
and France will have to adapt 
itself t» these standards." 

But the business world 
remains worried that the process' 
of preparing the French econ- 
omy far the rigours of interna- 
tional competition is stifi in its 
infant phase and that the moder- 
nisation of French industry 
could be seriously disrupted by 


the current crisis and its back- 
lash. Their anxieties span a num-_ 
berof areas. 

French companies have in 
recent years been reducing radi- 
cally their very high indebted- 
ness, partly as a result of 
improved profit margins, but 
also of greater access to equity 
financing. The stock market 
crash has put a block on new 
funding and companies which 
had counted on raising fresh 
equity to finance their develop- 
ment plans have been forced fin 
rethink their finatnriai strategies. 
A series of major capital 
increases have already been 
placed an ice. 

The Government has been 
forced -to suspend privatisation 
with only 40 per cent of the pro- 
gramme completed. jThe flotation, 
of the ICatra defence and elec- 
tronics group, worth between Ffr 
700m and FfrSOQm, is still post- 
poned and the much larger pri- 
vatisation of -Union des Assur- 
-ances de Paris (UAP), the 
country’s biggest insurance 
group,, was last week put off 
until the New Year at least Mr 
Balladur acknowledged that 
going ahead with the Matra pri- 
vatisation despite its limited size 
would "go -down badly in the 
current situation.” 

The suspension of the privatis- 
ation programme - raises new 
problems for the companies 
which remain in the state sector. 


The Government is unlikely to 
be able to privatise another 
major clearing bank and an 
industrial -company .before the 
presidential elections, as it had 
hoped barely a month ago. This 
leaves the banks at a competitive 
disadvantage to their already pri- 
vatised rival. Socle te Ge nerate , 

like BhoneHPtoulenc or FecSney^ 

■ which need access to the market 
to finance international expan- 
sion plans. ' 

French companies are learning 
fast about the infidelity of over- 
seas shareholders. French blue 
chip companies, like L'Air Uq- 
uide, Peugeot and Moet have 
been among the worst hit by the 
stock market -crash, partly 
Musthe^wftb^sDi^' 
tkm of “hot International share- 
holders'. and parity ' b ec au s e, r as' 
the moat liquid stocks, they are 
the first to be sold by a fund 
manager nmmng for cover. - 

The plunge in share prices has 
left even the largest companies* 
vulnerable to hostile bidders. 
Although n number of major 
French companies like BSN, 
Moet and St Louis have set' up 
anti-takeover defences, other tar- 
gets which now look cheap in 
current market circumstances 
are already finding it much har- 
der to put together defences. 
Even before the market's fall, 
major Companies like Michelin, 
Peugeot, CGIP, L’Air Llqmde and 
Compagnie du Midi, worried by. 


proposals to abolish the register- 
ing of shares in the names of 
thelr awners, successfully fought 
for measures which would safe- 
guard their ability to identify 
their shareholders. 

The blow to confidence In the 

workings of the free market may 
bring out the old. dirigistg 
'nstincts of civil servants and 
politicians. Unconvinced free 
marketeers like Mr Jean Saint 
Geours, chairman of the C1C 
banking group, have already 
called ter increased regulation of 
the financial markets. Some 
bankers fear that the Banque de 
FYance . might be tempted to 
'return to its old methods of 
credit controls. 

The economic slowdown now 
expected to result in the US from 
the crash is bound to have 
knock-on effects on the French 
economy, which is 30 per cent 
dependent on external demand. 
Mr Michel Pebereau, chairman of 
the recently privatised bank 
CCF, says, in line with other 
commentators, that there will be \ 
less growth, even if there is no 
actual recession. 

Moreover, the jolt of the stock 
market crash has changed the 
ground rules for next year's pres- 
idential election, which no one 
had previously expected to be 
' fought essentially in terms of 
economic issues. Policy debate 
had focused almost exclusively 
on social problems, such as 
immigration and law and order, 
which had become more salient 
as a result of higher unemploy- 
ment and the emergence or die 
ultra-right Front National. 

By contrast, the central politi- 
cal contest between the Social- 
ists and the Gaullists had taken 
the form of mudslinging and the 
excavation of political scandals. 
On economic issues the Socialists 
appeared mesmerised as the 
appeal of a more liberal eco- 
nomic philosophy and the suc- 
cess of the Government's priva- 
tisation programme seemed 
increasingly to displace the old 

ideologies. 

But the crash is bound to 
revive the left-right economic 
. debate. Perhaps even more dam- 
aging fbr Mr Chirac, it has given 
the chance to Mr Raymond 
Barre, the former Prime Minister 
and his main rival on the right, 

. to distance himself from the 
Government and its manage- 
ment of the crisis, without mak- 
ing very clear where he does 
stand. 

Much the same, so far, can be 
said of the Socialist Party, which 
has quickly seized the opportu- - 
nity to calf for a halt to privatis- 
ation without offering coherent 
alternatives on how to cope with 
the crisis. 

With the crisis stffl far from 
over, it is uncertain how this 
debate will develop. At the 
moment, Mr Barre is the main 
beneficiary and has moved well 
ahead of Mr Chirac in the 
though stfll trailing behind 
dent Francois Mitterrand. 

Inevitably, all parties will be 
‘ manoeuvring to exploit any 
shifts in public opinion. All may 
resort from time to time to the 
vo c a bul a r y of interventionism 
and state management. 

That is what industry is afraid 
of. But the reality of the interna- 
tional market place and of 
France's place in it makes it 
almost inconceivable that there 
can beany going back. 

As Baron SellUere puts it: The 
crisis will create conflicts. There 
may be a retreat from the 
excesses of ultra-liberalism, but 
not a defeat for liberalism itself. 
You will not see a renaissance of 
the ‘Commissariat an Plan’ or a 
.return to the old French values.” 



Mason sharpens 
defence drive 

The drive towards closer 
Anglo-French defence collabora- 
tion has been sharpened with 
the appointment of Sir Ronald 
Mason as a director of Thomson 
UK Holdings. This Is the British 
subsidiary of Thomson, the 
group which now counts among 
its multifarious interests Thonv- 
EMI’s Ferguson television subsid- 
iary but which encapsulates vir- 
tually the entire French, defence 
electronics sector. 

Mason has clearly landed on 
his feet since earlier this year he 
bailed out of the chairmanship 
of Hunting Engineering, the mis- 
sile and munitions part of Hunt; 
ing Associated Industries, pro- 
testing that the parent com; 
was starving its defence 
iary of investment funds. 

As former chief scientific 
adviser (1977-83) at the Ministry 
of Defence, Mason is well placed 
to guide Thomson around the 
British defence scene, and help it 
choose partners, or even acquisi- 
tions. The French company has 
always complained of the con- 
fusing plurality of UK defence 
electronics firms, in contrast to 
the quasi-monopoly it has in 
France. 

There ia certainly plenty of 
governmental push for close 
Anglo-French defence ties, and 
Thomson, it should be noted, is 
still state-owned. The two coun- 
tries* defence ministers, George 
Younger and Andre Giraud, have 
stepped up the frequency of 
defence discussions that even 
embrace aspects of their nuclear 
deterrents, while their defence 
procurement chiefs have pledged 
to increase collaboration and 
cross-purchasing between 
Europe s two largest defence sec- 
tors. 

So far, both London and Paris 
claim, there is no question of 
joint Ando-French manufacture, 
or operation of nuclear weapons. 
But it might be of some conse- 
quence for the future that 
Mason’s responsibilities once 
Included the Chevaline update of 
Polaris and the purchase of Tri- 
dent 


Listen hero 

* I have no concrete plans at 
all but a large number of elastic 
ones,” said Alan Cozen. After 10 
years as editor of Punch he Just 
couldn't turn off the flow of lit- 
tle jokes when he talked yester- 
day about his new job as editor 
of The Listener. 

Coren was supposed to be giv- 
ing up Punch at the end of mis 
year to concentrate on writing 
books but then in the past few 
days the call came suggesting he 
might like to apply for TheLfa- 
tener. 

He says he got more and more 
excited about the idea of being 
the first editor of the magazine 
under its new joint BBC-ITV 
ownership with what be hopes 
wOl be proper financial backing. 

The title will stay the same 
but Coren wants ”co make of it 
an arts magazine*. But as he 
pointed out, since broadcasting is 
itself an an form and broadcast- 
ing deals with all the issues gen- 
erated in society the scope of 
The Listener would continue to 
be very wide. 

There would not be In future 
so much about the politics and 
technology of the broadcasting 
industry. There were lots of 
other places for that. 

Coren has also been promised 
complete editorial independence. 
”1 can say what I like about 
about anyone," he says. *1 can 
campaign for the defenestration 
of Michael Checkland 


Television) or so I have been 
told." 

But what about the four books 
he was planning to write?"! don’t 
intend working at The Listener 
after 8pm and as there fa nothing 
on television .... ” said Coren. 


Long goodbye 

There are not many figures for 
whom the UK advertising indus- 
try would queue up to say its 
farewells as it is doing now- for 
Jeremy Bull more, long-serving 
chairman of J Walter Thompson 
and the Advertising Association. 

There have been seven "leav- 
ing dos* in the past month and 


there are are at least another six 
to go before the year fa out. As. 
David Abbott, adviser during the 
last election to the SDP, 
Alliance, says: "Like the 
Games you wonder what you'll 
do after they’re all over. At least 
the Games are aver in & fort- 
night — 142 nations, involving 
5,468 men and 1,620 women ath- 
letes manage to complete 220 
events all in 14 days. It takes the 
advertising industry over three 
months just to send one man 
through a door.” 

But despite the mickey-taking, 
Abbott, like other members of 
the industry, pays grateful trib- 
ute to Bullmore as the man who 
has done more than anybody to 
rid advertising of its huckster 
image and to give it some 
weighty respectability. 

The sprightly BuUmore contin- 
ues his round of leaving parties, 
collecting comeback offers but 
notiiing away about his 


Secret places 


What fa so secret about the 
North-South divide? The civil 
service moves hundreds of its 
more senior people around the 
country every year. Relocation is 
handled ln-house. 

In keeping with the tendency 
of the civil service to bring the 
private sector in to its non-care 
activities, however, thedecision 
was made recently to seek out- 
side tenders for some of its relo- 
cation needs. 

Black Horae Relocation, part of 
Lloyds Bank, fa sponsoring a con- 
ference today in London for the 
dvfl service, .which includes a 
discussion on the issues related 
to moving from north to south 
and vice versa. Permission was 
granted by the civil service for 
one journalist, from the Finan- 
cial Times, to be present 

Last week, consent was with- 
drawn, on the grounds that inno- 
cent civil servants would not 
want to be pestered by the press. 
Once again, the soWret service 
sl a ms the door on just a rijnqsa 
at the way it goes about its busi- 
ness 


Observer 



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IAS tells corporate treasurers the moment there’s a change 

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23 


Financial Times Tuesday November 17 1987 


Jury trials 

a!' in .fraud cases 


From Mr MicfuxH Beckman 

Sir, I. refer to JusttoianYartide 
on "Fraud and. the Burden of 
Proor (September 21) dealing 
with the Canton case.. The pur- 
pose of the vehicle would seem 
to be to take on as many passen- 
gers as possible towards the con- 
clusion that jury trials should be 
diminished.- You might have 
some effect with the busy com- 
muter who scans your article 
and assumes the point made to 
be a good one without analysis. 

For my part, 1 find it yet again 
another distasteful attempt to 
remove or diminish the jury sys- 
tem on an emotive basis without 
any real analysis of what actu- 
ally occurs in & given case . 
Indeed, the lack of logic rather 
endears me to the view that the 
longer we keep the •common- 
sense'' Juries ana away from pre- 
conceived notions, the better. 

This is particularly so in respect 
of fraud cases in Hong Kong; 
where the qualifying system, and 
the right of challenge ensures 
the average jury Is highly intelli- 
gent, capable and usually speak- 
ing two if not three languages; at 
leak this seemed to be the case 
in the Carrtan trial, 

I have- more than a nodding 
acquaintance of the case, and 
cannot- see how. the decision in 
that case can Justify the publica- 
tion of an article "endorsing, yet 
again, the minority view ofprao- 
titioners at' the Bar that Jury tri- 
als should be done away with in 
case of complex fraud. 

Finally, I would point out that 
the suggestion that the "delay" 
point was one raised and 
strongly relied upon by all coun- 
sel for tiie defence is not accu- 
rate; had it been the case then 
than might have been some jus- 
tification for the format of your 
article. 

Michael Beckman, 

19 014 Buildings, 

Lincolns Iitn, WC2 


Protecting small 
shareholders ! 

From Mr J. C. WiOett ■ 

Sir, One of the conclusions to. , 
be drawn from your report 
(November 3) of the TSB 
extraordinary general meeting is ; 
that the case for a representative 
body dedicated to the protection 
and preservation of the interests 
of small shareholders grows ever: 
stronger. 

When other managements are 
reviewing or calling off acquisi- 
tions, what makes the TSB 
Group board want to prraa ahead 
with the original terms' for Hill 
Samuel when market price levels 
have collapsed? If the acquisition 
had been on a share exchange 
basis its value would have been 
automatically adjusted by mar- 
ket movements. 

The majority of roughly 10 to 
1 in the votes recorded, and- the 
uncomprdmialhg nature of com- 
ments front the floor' of the" 
meeting suggests that there' may 
have been a significant shift of 
opinion about tne tains or that 
there might have been a conflict 
of interest between the private 
and institutional shareholders in 
the view taken. The institutional 
shareholders do not seem to have 
been of a mind to send personal 
representatives to the meeting 
with mandates to overturn the 
proxy vote or to support an 
adjournment. If nothing else let 
us hope that this episode has 
sounded the death knell of that 
earlier ill-conceived proposal by 
the TSB Group chairman, that 
shareholders should receive 
abbreviated annual reports as a 
cost-saving exercise. Any credi- 
bility attached to such an idea 
disappears when the premium to 
probable current market value 
now being paid for Hill Samuel 
would have absorbed the former 
“problem" for the neat hundred 
yearsorso. 

' What shareholders do with 
th eir, annuaj reports is entirely 
the^r' own- - prerogative. As 
licensed managers of the bust-- 
ness the directors have dear and 
unequivocal responsibility to 
inform the owners fully and 
equally under (hear reporting 
obligations.. 

J. a Willett, 

Shareholder Monitor 1 Ltd, 

PO Box 14, 

Worksop, Notts 


Letters to the Editor 


Common Market’s limitations 


From Mrbestie ffuddield A£EP 

Sir. I am surprised that there 
has best so Jittle comment on 
John Lloyd's tunnel vision 
assessment (October 26) that 
Frances Morrell's paper on an 
Alternative to Trade ware "is far 
frorp unique among the Party’s 
soft left leadership” and that 
"Labour is trying to be the new 
Europeans.” 

So narrow, was W* reportage 
that . he did not even mention 
John Palmer's much more 
cogently argued . book, Europe 
Without America, which 
deserves serious consideration, 
far it amply Illustrates the politi- 
cal and eeonmBla ctd-de-sac in 
'which his colleagues in the 
Socialist Society and Frances 
Morrell now find themselves. 
Neither. . did. he mention the 
wealth of opposition to the 
whole framework- of ..the Com- 
mon Market running throughout 
constituency parties ana the 
trade, unions. John Lloyd cannot 
simply "magic” away the' feet 
that mast active Labour Party 
members are still fundamentally 
anti-Cammon Market ' 

- What, neither John Palmer nor 
Frances Morrell seem to under- 
stand are the limitations placed 
on what they both seek, not only 
by the existing framework of 
Common Market Institutions, but 
by progress under the Single 
European Act, goaded onwards 
by increased majority voting, to 
Its projected "completion of the 
internal market’ by 1992. 

Already, through the siren 
voices of the Palmer-MarreH ."be 
nice to- the Common Market” 
axis, the British Left has been 
starved of the debate over the 
ratification of the Single Euro- 
pean Act which necessitated a 
referendum In both Denmark 
and Ireland. As a result, in con- 
trast with the fufi-Udoded cam- 
paigns waged by socialist move- 
ments- in chose countries, the 
•objections to the European Com- 
munities (Amendment) Bill from 
the Parlimentary Labour Party 
in the House of Commons on 
April 23 1986 were puny. 

As majority voting proceeds 


apace, with "the exerase ol a 
•veto politically <fifficult” (House 
of Lords Select Committee on the 
European Communities 12th 
Report on the Single European 


increasingly locked into a prede- 
termined strategy to reproduce 
all the . worst features or Ameri- 
. can and multinational capitalism 
from which they keep telling us 
they, seek their , escape. For the 
sod irony is that most of the 
.. European initiatives which 
Frances Morrell seeks to praise - 
especially the new-technology 
programmes of the Commission, 
like EUREKA, RACE, FAST and. 
BRITE - are being used to fund 
percisely those European Imita- 
tors of the American multina- 
tional corporations they would 
seek to oppose. 

I only wish that the past 
endeavours of the GLC * and 
Greater London Enterprise 
Board, alongside the valiant and 
radical local authority initiatives 
with which Frances Morrell has 
been associated, and alternative 
economic plans of the Lucas 
workers, Kodak, Phillips, Fords 
and General Motors stewards, 
were together enough to counter, 
or even arrest these develop- 
ments. But the sad truth is that 
as long as Britain remains within 
the framework of the EC, en 
route to Its "completion of the 
internal market", even those 
left-wing elements John Lloyd 
describes will increasingly recog- 
nise that its motive fa the slavish 
imitation of the imitation of the 
worst features of the American 
and Japanese economies. 

In outer words, more power to 
John's and Frances’s elbow in 
their rejection of Atlanticism, 
NATO and American multina- 
tional capitalism. But unless 
they first get rid of , or get out- 
side, the framework of the Com- 
mon-Market, they will only suc- 
ceed in reproducing a European 
variation on these ideas. 

Leslie Huckfield, 

PO Box 200, 

Wigan, Lancs 


Defining an 
accountant 

From Mr J.E.Ovld 

Sir, In his article on the role of 
the Accounting Standards Com- 
mittee (November 9) Richard 
Waters states that ‘most com- 
pany directors are not accoun- 
tants and do not always feel 
bound by the rules made Dy and 
for accountants." It is unfortu- 
nately the case that at' present 
anyone may tall themselves and i 
act as an accountant. 

The Chartered Institute of 
Management Accountants is only 
too well award ol -the regulatory 
and enforcement difficulties this 
, presents and has long advocated 
a statutory definition of accoun- 
tant 

The government is currently 
drafting legislation necessary to 
implement the EC Eighth Direc- 
tive on the regulation of auditors 
and this presents an excellent 
opportunity to rectify the situa- 
tion. Under C1MA proposals 
small companies’ annual 
accounts would cany a certifi- 
cate stating that they had been 
properly prepared in accordance 
with tne Companies Act. The 
certificate would be signed by 
the accountant responsible for 


Faster freephone could be cheaper 

From Dr S. D. Dimer ' . .. connect ^Freephone calls 

•. Sir, Your report (November 7) (another "minute). In addition 
that British Telecom are about to most PABXs are barred to direct 
promote, amongst other things, calling of 100 so that a further 
the use of Freephone numbers is minute is consumed In asking 
sad to hear. It is an antiquated the local operator to. dial 100. 
system that requires us to call an Why not instal the 0600 charge- 
operator (two minutes?) who free call system faster? 
then has to remember where she S. D. Dover, 
left her instructions on how to 17 Heath Hurst Road, NWS 


£Z)//MNES5 BOQfr 
OF RECORDS* . 
pLEflse 


LOOr.,/'VEGOrroUR 

pREEpHOHE/MBER 
Ifii LESS IHfiA/ ftWR 
AAiAUrrES A/oWwHflrr 


Argument for Ulster’s integration 

From Mr JH. Birnie. * George thought the r am s hackle 

Sr, You claim (November 11) structure would very quickly col- 
thst British Government policy lapse into the Republic of Ire- 


that British Government policy lapse into the Republic of Ire- 
to wards Northern Ireland, post land. In feet, the Stormont Par- 
the Anglo-Irish Agreement; can- Lament just about worked until 
not be characterised as one of tbe late 1960s. 
drift In fact many people living Once that time British politi- 
in this put of the United King- dans have tried again and again 
dont fed that Westminster's atti- to find a "power sharing" solu- 
tude towards Northern Ireland tioa -within Northern Ireland, 
has been one long series of expe- The failure of all these efforts 
diendes since I92L • . was .os predictable as it was 

tragic. Now is the time for these 
expedients to be abandoned and 
tiie residents of the North of fee- ^ ^Wity of Northern Irish 


land chose to remain British but __ 
Lloyd George and all the British {Jr 
Prime Ministers since have ™ 
refused to come to terms with i_ 
this democratic wish. p. 


the majority of Northern Irish 
people granted their aspiration 
to be fully integrated into the 
UK, If the Conservative and 
Labour parties began to take the 
Province seriously and to contest 
elections there, this would be the 


RAther than have Northern elections there, this would be the 
Ireland administered in tbe same most powerful signal possible to 
way as Wales and Scotland, they terrorists that they can never 
chose to impose a devolved Par- win. • 
liament which very few, JJE. Baras, 
whether Protestant or Catholic. 6 Farkmount Ave, Ballymena, 
really wanted. Presumably Lloyd* JV. Ireland 


In economic turmoil, a Keynesian analysis may be helpful 


From Professor James Meade 
Sir, For a number of yeazs the 
United States has beat running a 
spendthrift economy with inade- 
quate savings to finance its 
domestic capital requirements 
including a large budget deficit. 
This has necessitated a strict 
monetary policy with high inter- 
est raxes to damp down the 
domestic demand for capital 
funds and to attract additional 
capital funds from abroad. The 
Inflow of foreign, funds so 
a trawfj»ri led to an 
of the dollar which 


and services for internal devel- 
opment of the country’s capital 
equipment. But more impor- 
tantly it would have mitigated 
and reversed the inflow of capi- 
tal funds from abroad. This 
.would have depreciated the dol- 
lar and would have increased the 
demand in world markets for US 
products relatively to the prod- 
ucts of other Industrialised coun- 
tries such as Germany and.. 
Japan. The Increased foreign 
demand would have Inflated the 
total demand for US products. 
The basic reason for a concoml- 


dence and difficulties of attract- 
ing new funds. It is very uncer- 
tain how great these deflationary 
Influences will prove to be; they 
may be minor; they may turn 
out to be substantial. This uncer- 
tainly in no way m odif i e s the 
need for a depredation of the 
dollar to undercut the manufac- 
tures of other industrialised 
countries; but it i n te n si fi es the 
need for Inflationary reductions 
of interest and/or tax rates in 
countries such as Germany and 

' i *• — y would have 

effects 


Japan because 
to offset any 


Inflationary effects of the resto- 
ration of the US balance of pay- 
ments. Industrialised countries 
including the USA should in any 
case design a flexible use of fis- 
cal and monetary policies so as 
to attain simultaneously (i) a 
control over unwanted inflation 
or deflation of the money value 
of their total domestic product 
and (ii) a national wealth target 
of some kind or another' which 
would rule out the disastrous 
effects of a continuing spend- 
thrift policy. Structurally for the 
longer-term this would imply as 


expensive to the foreigner, thus 
encouraging imports and 
restricting exports. Thus far a 
number of years the USA las 
been absorbing more than its 
income, relying on the Inflow of 
foreign goods to make up the 
balance. The balance of pay- 
ments deficit has became mare 
intractable as new debt must be 
incurred not only to finance 
excess imports but to covo- the 
interest payable on old debt. 
Compound interest k a formida- 
ble factor. The chickens have 
now come home to roost. . . 

Before the Stock Exchange 
crash the United States might 
have accomplished a gradual res- 


tructuring, little by Stile raking 
tavofi and/or reducing govern- 
ment expenditure with a pari 
passu relaxation of monetary 
policy. The gradual reduction of 
interest raxes would have had 
«w»M» inflationary effect in stint- 
ulating the. demand for goods 


it expenditures would 
to offeet these tofla- 


nvany and Japan would have had 
to face the deflationary effects of 
a decline in the foreign demand 
for their exports. To offeet tills 
they would nave needed to stim- 
ulate the internal demand for 
their own goods and services by 
a- gradual out substantial relax- 
ation of their own financial poli- 
cies. The whole structure of 
world interest rates could have 
been gradually reduced. 

The present worldwide crash 
In stock exchange valuations of 
capital wealth introduces a sud- 
den add frioimi deflationary fac- 
tor. Private wealth holders win 
be discouraged from expendi- 
tures and, more importantly, 
i nve st m ent in new capital devel- 
opment by private busi n es s will 
be dbeouraged by lack of confi- 


USA. 

In a country like the UK, so 
long as it has neither an exces- 
sive deficit nor an excessive sur- 
plus on the current account of 
its . foreign payments, there will 
be a need for an appreciation of 
its. currency vis-a-vis the dollar 
and depreciation vis-a-vis the 
yen and mark in order to shift 
its demand for imports from the 
latter onto the former source of 
supply, without any marked 
change in the overall traded- 
weighted value of the pouncL 
This would need to be combined 
with, a relaxation of financial 
pofides sufficient to offset any 
- deflationary effects from stock 
exchange revaluations on the 
demand for goods and services. 

In tiie United States the imme- 
diate urgency for a reduction in 
the budget deficit is reduced, 
because the deflationary effect 
of the stock exchange slump wfli 
. itself in part or whole offset the 


tion of the US budget deficit; 
and convincing plans and com- 
mitments should be made here 
and now for this structural 
change. This would help to 
restore confidence; but for the 
first time for many years the 
short-term situation demands a 
more cautious wait-and-see atti- 
tude to the actual timing of fis- 
cal restraint 

The 1829 Wall Street crash 
was turned into a major eco- 
nomic slump by a perverse 
restrictive monetary reaction 
due to inappropriate banking 
Institutions In the USA. Let us 
beware of the possibility that the 
1987 crash could be turned into a 
major economic slump by a per- 
verse timing of a necessary 
structural reform of USA fiscal 
arrangements. 

J. Meade, 

40 High Street, 

Little She {ford, Cambridge 


depend on satisfying criteria that 
would then be set out in the 
Companies Act. 

Such an approval would more 
accurately reflect current prac- 
tice in the small business section 
and allow the government to 
relieve hundreds of thousands of 
small companies of the legal 
necessity for formal audit. 

Regulation, as required by the 
Eighth Directive, could then be 
concentrated on the relatively 
small number of larger compa- 
nies and the remarkably few 
firms responsible for their audit 
.. Effective regulation of the 
audit sector and rationalisation 
of the accounting profession as a 
whole can only benefit investors, 
companies and the community. 
C1MA wfll continue to press for 
amendment to legislation to 
meet today’s needs. 

J. EL Ould, 

Reed International Pic, 

83 Piccadilly, W1 

Student 

grants 

From Mr L. O. Bartram 

Sir, 1 wonder if very many peo- 
ple are. aware of the current 
injustices in the tax laws relating 
to the discrimination between 
parentally supported students 
and Local Education Authority 
(LEA) grant supported students, 
it is the LEA that determines if a 
person is eligible for a grant, and 
how much of that grant the par- 
ents will contribute. 

It seems immaterial to me, and 
1 suspect many other people, If 
my income Is paid by my parents 
or my LEA. Not so the Govern- 
ment! It makes a distinction. 
This discrepancy arises from the 
way in which the LEA grant and 
a deed of covenant are regarded. 
A deed of covenant is regarded: 
as taxable whereas an LEA grant 
Is not. 

What then is the Justification 
for this distinction? It seems, by 
forcing some parents to be 
responsible for their child’s 
finances while, they are at uni-, 
versity, that child must also 
expect to have a lowo- standard 
of living than, if he/she were in 
receipt of an LEA grant. The stu- 
dent whose grant is made up 
with some degree of parental 
contribution is therefore penal- 
ised because of:- 

a) their parents home and b) 
the way in which the grant is 
paid. Why is the student paying 
for this? Perhaps the govern- 
ment earns vast revenues by tax- 
ing this particular type of stu- 
dent? It’s the current shambles 
that the government is wallow- 
ing in that is the cause. One gets 
the impression of a runaway 
steam locomotive that is intent 
cm cutting spending with scant 
regard for basic human rights, 
whilst attempting to seduce 
higher paying tax payers with 
compromises such as allowing 
covenants as a method of pay- 
ment 

I suppose that to a democracy 
one ought to bow to the wfll of 
the majority, but couldn’t we try 
and remove the wool from their 
eyes first? 

L. O. Bartram, 

1SS Westbvry Road, 
Westburyon-Trym, 

Bristol 


WHY SO many fortieth anniver- 
saries? A surprising amount of 
political energy and diplomatic 
ingenuity has been devoted to 
marking them, these last few 
years. D-Day, Yalta, VE Day, 
Potsdam, Hiroshima, the foun- 
ding of the UN: all were care- 
fully, often agonisingly, com- 
memorated to 1984-5. This year 
it has been the Marshall Plan. 
Next year, I feel sure, we shall 
hear a lot about the coup to Pra- 
gue, the Brussels Treaty (origin 
of the Western European Onion) 
and the Berlin airlift. In 1989 it 
will be the turn of Nato and the 
two German states. 

Of course these were all great 
events, and they did happen 40 
years ago. But 40 is not such an 
obvious number to celebrate. It 
is no neat fraction of a century. 
Having got so far, why not wait 
another ten yean for the golden 
jubilee? 

One obvious reason is that 
many of the protagonists or sur- 
vivors are still around, whereas 
to the nature of things fewer of 
them will be in ten yean' time 
But I’m not sure that that's a 
sufficient explanation. There is, 
after all, a certain selectivity 
about the song and dance made 
on these occasions. One might 
think the partition and indepen- 
dence of India was a pretty 
important event to British and, 
indeed, in world history. But 
that fortieth anniversary fell this 
year, too, and passed almost 
unnoticed outride the subconti- 
nent. 

The events that have been 
moat assiduously commemorated 
are those which have to do with 
the founding of the postwar geo- 
political order; the transition 
from hot war to cold war, from 
holocaust to balance of nuclear 
terror, from Europe as battle- 
ground of its own demonic forces 
to Europe os frontier between 
two continental superpowers. 
And I suspect that one reason for 
this is a widespread feeling that 
not only the individual survivors 
but the postwar order itself may 
not be around much longer. 

The thought Is prompted by a 
conference 1 attended last week 
on “the Marshall Plan 40 years 
after: lessons for the interna- 
tional system today". It was held 
In Bologna, but instigated and 
largely sponsored by the United 
States Information Agency. The 
idea was, apparently, to assem- 
ble a group of "young leaden" 
from the countries which bad 
participated in the Marshall Plan 
and the institutions - OECD, 
EEC, Nato - which could be said 
directly or indirectly to have 
grown out of it; to treat them to 
a series of exposes by veterans of 
the Marshall Plan itself, Ameri- 
can and European; and to 
encourage them to reflect, to a 
series of "workshops", on how 
the achievements of the Marshall 
Plan could be preserved, built on 
and extended m the future. 

One striking thing about the 
outcome was the almost com- 
plete absence of politicians and 
businessmen among the "young 
leaden": the organisers had had 
to fell back for the most part on 





FOREIGN AFFAIRS "u; 

Still doing 
penance, 
40 years on 


academics, journalists, and rela- 
tively junior officials. Another 
was the pessimism or the veter- 
ans about the future of the 

American-led political and eco- 
nomic order which, 40 years ago, 
they had helped to create. 

the one seemed, symbolically 
at least, to bear out the other. 
While people like Giovanni Spa- 
dotini,’ the former Italian Prime 
Minister, and Denis Healey - who 
■as international secretary of the 
Labour party wrote pamphlets to 
persuade other European Social- 
ist parties to support the Mar- 


one end of the market and of 
Johns Hopkins University's Bolo- 
gna Center (where we were 
meeting) at the other. American 
military power too was still 
unique, and the true purpose of 
"star wars" might indeed be to 
reassert American military pre- 
eminence over allies as well as 
adversaries. It was only in the 
economic sphere, Ellwood sug- 
gested, that US hegemony was in 
real trouble. 

Perhaps so. But cultural power 
often outlives politico-military 
power, as examples ranging from 


Pax Americana is dying. But 
what, if anything, 
ran replace it? Edward 
Mortimer looks for an answer 


(hat threat was seen as political 
rather than military. It was only 
after the events of 1948 - the 
coup in Prague and the Berlin 
blockade - that leaders on both 
sides of the Atlantic became con- 
vinced of the -need for a perma- 
nent defensive alliance, and only 
after the Korean War broke out 
in 1950 that that alliance was 
endowed with a military struc- 
ture designed to resist a Soviet 
, invasion of western Europe. 

Today communism as a politi- 
cal threat to western Europe has 
long since faded. Thanks - In 
part, at least - to the Marshall 
Plan, the west European democ- 
racies are far stronger than they 
mere in 1947; ana communism 
no longer has the aura of a con- 
quering and liberating force that 
the Red Army's victories had 
given it 

The idea of a Soviet invasion 
of western Europe also seems 
far-fetched. Maybe that is pre- 
cisely because Nato has pro- 
vided, and still provides, an 
effective deterrent But the fact 
remains that fewer and fewer 

west Europeans really feel in 
their gut the need for American 
protection; and that, too, is a rea- 
son why American hegemony is 
less ana less readily accepted. 

But what can replace it? If the 
eighteenth century was French, 
the nineteenth British and the 
twentieth American, will the 
twenty-first be Japanese? It is 
possible. But neither Britain nor 
France ever enjoyed the absolute 
preponderance of world power 
which America had in the years 
after 1945 and it is unlikely that 
Japan will The historical norm 
is more of a rough and shifting 
balance between several compet- 
ing powers. 

to any case, the transition to a 
new hegemony would take some 
decades. For the time being, at 
least, we are going to inhabit a 
multipolar world. But how shall 
we manage it, given that the 
existence of nuclear weapons 
rules out the traditional process 
for registering shifts in the geo- 


shall Plan - are still happy 
enough to share the limelight 
with their old American friends 
and colleagues, the young deci- 
sion-makers of today's western 
Europe evidently have other, 
more pressing commitments. 

Two things held the postwar 
order together fear of the Soviet 
Union and the hegemonic power 
of the United States. 

The latter, as this column 
argued three weeks ago, is inexo- 
rably declining - a view appar- 
ently shared by both Americans 
and Europeans at the Bologna 
conference and implicitly also by 
those Europeans who stayed 
away. 

The Bologna-based British his- 
torian David Ellwood, who 
organised the conference, did 
point out that American cultural 
power remained undiminished, 
illustrated by the popularity in 
Europe of Dallas and Dynasty at 


ancient Greece to modern Britain 
can testify, whereas economic 
power runs ahead of it. Already 
America's economic crisis has 
spawned a Congress determined 
to bring "star wars" down to 
earth and a new Defence Secre- 
tary who accepts the need for 
cuts in military spending. It is 
true that so far he rules out a cut 
in US troops in Europe, but that 
may be only a matter of time. 

At least one speaker to Bolo- 
gna recalled that the original 
purpose of the Marshall Plan 
itself was, in fact, "to let the 
Americans go home”, by 
enabling Europe to stand on its. 
own feet Clearly the communist 
threat did have something to do 
with it (though Marshall's origi- 
nal offer of help was addressed 
to the whole of Europe: the deci- 
sion to exclude the communist 
bloc was Stalin’s). But in 1947 


political balance, namely war? 

The truth is, we have no 
notion. We have the Wilsonian 
ideal of a world order not based 
on hegemony or fear but on the 
rational management of the com- 
mon interest by states acting in 
concert and respecting each 
other’s sovereignty - the ideal 
embodied in the UN Charter. But 
we have no experience of such a 
system in practice and we do not 
know how to set about making it 
work. 

An additional handicap is that 
Japan and West Germany, the 
two countries everyone is calling 
on to take over some of the bur- 
dens of leadership, are the two 
whose pretensions to geopolitical 
dominance the last world war 
was fought to squelch. Both have 
spent tne last 40 years doing 
penance for such pretensions, 
and learning to regard the culti- 
vation of their own gardens as 
the only respectable national 
achievement. It’s a lesson they 
find difficult to unlearn ana 
most of us have mixed feelings 
about asking them to do so. 


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Judy Dempsey reports on Romania’s efforts to end its dependency on Western banks j Thatcher 


The price of paying back debts 


IP ROMANIA continues with its 
policy of rapidly repaying its 
hard currency debts, it will be In 
the bizarre situation, by the 
early 1090s, of having to return 
- to the banks for cash to moder- 
nise its ailing industrial base. 

Western bankers based In 
Bucharest think the country’s* 
obsession with repaying the 
debts by the end of the decade 
has led to a serious neglect of 
investment In machinery and 
delayed the introduction of 
much-needed new technology. 

A banker who has worked in 
Bucharest for several years com- 
mented, "you can just see a time 
when Romania will have to 
return to the banks for loans. 

"What is the alternative? If 
they want to have goods that 
will sell on Western markets, 
they will have to import new 
technology for which they will 
require loans. It is as simple as 
that.” 

For the Romanian authorities, 
the options are far from simple. 
For the past seven years, Mr 
Nfcolae Ceausescu, the Roma- 
nian President ana Communist 
Party leader, has embarked on 
what appears to be both a per- 
sonal ana national crusade to rid 
the country of all foreign debts. 

Enterprise managers are 
exhorted to produce more goods 
for export. Import licences 
which require hara currency are 
at a premium. Ministers are regu- 
larly reshuffled or dismissed 
because they fan to reach export 
targets. The bulk of the coun- 
try's energy resources are now 
earmarked for industry. Break- 
ing the dependence on the West- 
ern banks is today the number 
one priority in Romania’s eery 
nomic policy and no Romanian 
official is prepared to question 
that. 


Romania 

Gross external debt 
$ blDon amfynrfiBoraa 

rmmwmmmum 



mmmm 

■S2&&3SS 

W 


ISiSiSSii 

85 87 89 fit 


1981 83 
SeanKPtaEcoa 


have had an enormous impact 
on Romania's foreign economic 
policy. 

Romania tackled its debts with 
extraordinary singlemindedness.' 
By the end of 1986, the external 
debt had been reduced to $!L5hn. 
This year alone, the country has 
already paid off tlBbn and by 
1991 the debt will be only 
$1.5bn. 

The price, in terms of the 
domestic economy, and in partic- 
ular the demands made on the 
country's industrial base, is now 
being paid. 

The shops continue to be mis- 
erably stocked. Milk products, 
butter, cheese, yoghurt, eggs and 
coffee axe almost impossible to 
buy. Meat is exported. This year. 


However, when they are asked 
what economic strategy they will 
adopt and how they will allocate 
their foreign exchange reserves 
once the debts have been paid 
the! 


Romanians say they wfll have no 
se of 


because of the summer 


This Is regarded by Western 
economists as a key indicator. 
With the cut in imports and capi- 
tal investments, Romanian 
industry is not being moder- 
nised. Its inefficient heavy 
industry consumes the bulk of 
the country's energy resources at 
the expense of radically reducing 
domestic supplies. 

The energy problem has 
become so serious that the 
Romanian authorities have 
requested an extra delivery of 
4m tons of oil from the Soviet 
Union above normal annual 
Soviet deliveries of between 4 
and 5m tons. For pa y ment, the 
Soviet Union is requesting more 
and better quality goods. Extra 
ofl deliveries, however, are no 
cure for the ailing infrastructure. 

"You can starve a country. of 


off, they dam u^Either they 


really do not yet Know, or 


they 

their 


pinna. 

Even Western bankers have 
little inkling about future strat- 
egy. "We are kept in the dark as 
much as you. We have no access 
to officials who will give us con- 
crete information. As a result, 
we ourselves don’t know what 
strategy to adopt for the future. 
We wait." 

Waiting few signs of a 
to emerge has been coloured 
the way in which Romania has 
dealt with its foreign debt 

At the end of 1981, for 
instance, Romania owed more 
than Sl0.5hn to the banks. But 
the Polish crisis of 1980-81, 
Romania’s request for reschedul- 


ing and the reluctance by West- 
1 further 


era banks to extend 
credit lines to Eastern Europe, 


The lei, the Romanian unit of 
currency has little real value. 
The black market is thriving. 
The dollar is worth five times 
the official rate of exchange. In 
this economy of shortages, muter 
is the new unit of currency. 

But what really concerns econ- 
omists - Romanian and Western 
alike - extends beyond the 
demands being made on the con- 
sumer. 

They now ask how long the 
infrastructure can stand up to 
such a rigid export-oriented eco- 
nomic policy in which exports 
during 1981-86 have risen by an 
average annual rate of 8 per 
cent. Imports, in sharp contrast, 
have increased by 1-3 per cent 
over the same period and little 
change is expected before 1990. 

During the same period, hard 
currency imports have declined 
at an annual average rate of 
more than 11 per cent. Capital 
investments are rising by an 
annual average of 1-2 per cent. 


capital investments ' tar two or 
l* a Western banker 


three years, 
based in Bucharest commented. 
-"But over a longer period of 
time. It becomes very difficult." 
He added that the industrial base 
would continue to deteriorate. 

There is always the option of 
increased trade with the Soviet 
Union, already a noticeable 
trend. Between 1961 and 1986, 
total Soviet-Romanian trade 
amounted to 17bn roubles 
($10.26bn). Between 1986 and 
1990 trade will rise to between 
35bn and 38bn roubles and 
Romanian officials recognise 
that this could adversely affect 
trade with the West. 

For the moment, however, no 
Romanian official speaks about 


the future. The economic 


unic policy 

does not lend itself to flexibility. 


the 


Unless, as economists 
level of imports, 
technology, increases, Romania 


will have to live with an incxeas- 
ly obsolescent industrial base 
1 an impoverished population.’ 


Eurotunnel 


sell-off at 


record cost 


By Richard Tomldnaln London 


EUROTUNNEL, the 
Anglo-French group building the 
Channel tunnel, yesterday 
launched one of the most expen- 
sive stock market notations ever 
staged by a private company. 

. The prospectus for the issue 
Shows that of the £770zn 
($1, 35bn) being raised through 
share offerings in London, Paris 
and other international markets, 
an estimated £68m - just under 
10 per cent of the total proceeds 
- will be absorbed in costs. 


This is substantially highe 
s incurred i 


than the expenses 


many other privatisation issues. 
TheS900m“ 


i British Airways flota- 
tion in February, for example, 
cost the Government £29m and 
BA S8ro - and was criticised as 
unnecessarily expensive. 

Trustee Savings Bank (TSB) 
paid some SSOm for its flotation 
in September 1986. This was less 
than 7 per cent of its £1.4bn 
proceeds and the figure was 
greatly inflated by the long legal 
procedures necessary to decide 
who owned the bank. 

Of the 568m being paid out by 
Eurotunnel, some 541.5m will be 
paid to the company’s financial 
advisers and intermediaries - the 
merchant banks, brokers, under- 
writers and receiving banks. 
Advertising, printing costs and 
legal fees account for most of the 
rest 

One reason for the high cost is 1 
the simultaneous offers on both 
sides of the Channel, which 
duplicated many expenses. 
Another is the unusual nature of 
the offer, which made extensive 


advertising necessary and pre- 
iponsors fro 


vented the sponsors from repeat- 
ing the Government’s successes 
in trimming underwriting fees. 


nel 


Altogether, some 229 Euro tun- 
units - each comprising one 


British share and one French 


shore - are being sold. Of these, 
iesoldi 


101m will be sold at 350p each in 
the UK. 101m at FFr35 ($20) 
each in France, and 18m at I75p 
plus FFr1750 in other countries. 
Eurotunnel’s market capitalisa- 
tion will be &l.l6bn. 

Of the units being sold in the 
UK, just under 42 per cent have 
been firmly placed with institu- 
tional Investors and the rest will 
be available to the public. The . 
offer closes on November 27. 

In France, where shares are 
mainly sold through the banks; 
the offer opened yesterday and 
shares will be sold on a first-- 
come, first-served basis. The 1 
offer will close on November 27 
or when all the shares are sub-' 
scribed, whichever is sooner. 


Japan may lift barrier between 
banks and security businesses 


BY UN RODGER IN TOKYO 


ABOLITION of barriers between 
banking and securities business 
in Japan and between different 
types of banks has been pro- 
posed by a sub-committee of a 
Ministry of Finance advisory 
body. 

’ A radical liberalisation of 
Japan’s tightly segregated finan- 
cial sys te m has Been discussed 
for a long ti m e , but this is the 
first time it has been advocated 
by a body associated with the 


the trust banking business, 
which is restricted to a few Japa- 
nese and foreign specialised trust 

An MoF official yesterday con- 
firmed the substance of the 
ne wsp a p er accounts, although he 
said the sub-committee did not 
a concluding opinion on the 


considering changes in domestic 
and international sitiiatiom." 
However, the barriers be tw een 


sectors are crumbling off 


raft report. 

It is difficult i 


by a 
MoF. 


The proposals, which should 
be seen as part of a typically 
Japanese process of budding a 
consensus for reform, wfll be put 
to the MoF*s Financial System 


to guess how long 
It will take for reforms to be 
implemented. There are power- 
ful vested interests in the differ- 
ent sectors and those benefitting 
most from the present system 
will try hard to slow the process 
of reform. 


Research Council (FSRC^eariy 


next month. The council _ 
almost certainly endorse them 
and recommend that the MoF 
implement them. 

According to Japanese newspa- 
pers, the sub-committee report 
says banks and securities compa- 
nies should be allowed to enter 
each other’s territories through 
subsidiaries. Also, short-term 
banks should be allowed to issue 


Last summer when the MoF 
published its latest timetable for 
liberalisation of financial mar- 
kets and institutions, it was cau- 
tious on the subject of the segre- 


the internationalisation of capi- 
tal markets and the Ingenuity of 
many bankers and brokers in 
finding ways around them. Thus, 
the MoF is under increasing 
pressure to do something for 
those b eing hurt by the present 
system. 

The existence of this report, 
and the fact that It appears to go 
beyond its remit to deal only 
with banks, may indicate that 
Japan will not wait until a simi- 
lar reform in the US financial 
system. Some 


system, 
change 
that Jap 


gallon of business areas. It said 
the FS 


FSRG woujd report by the 
year-end on the 


sei 


roblems cre- 
differentr 


pro i 
ting 


debentures, a privilege restricted 
in credit banks. 


to the Jong- term 
Finally, any financial institu- 
tion should be allowed to enter 


ated 
types 

As for the distinction between 
banks and securities companies, 
the MoF would “review appropri- 
ately, as necessary, how this dis- 
tinction should 
areas, 
inherent 



Some opponents, of 
in Japan have argued 
that Japanese reform should fol- 
low changes to the US Glass- 
Steagall Act, which separates 
banking from securities business 
in that anintiy. 

The liberalisation process in 
Japan will not affect directly 
most of the major foreign finan- 
cial institutions operating in the 
country. They already have 
access to both banking and secu- 
rities businesses. However, it 
would be likely to intensify com- 
petition in the most profitable 
sectors, particularly in the secu- 
rities area. 


calls for 
growth 
in Japan, 
Germany 


By 
In London. 


WEST GERMANY sad Japan 
should expand their domes 
•tic economies in line with 
say cat in the US budget 
deficit if the risk of reces- 
sion la to avoided, Mrs Mar- 
garet Thatcher, the UK 
Prime Minister, urged last 


•V 


to 


the Lord Mayor’s banquet In 
the City of London, Mrs 
Thatcher placed as much 
emphasis on action by trade 
surplus countries as on that 
by the US. This repr es ents a 
shift of p res e n t ati on from 

recent uta hy her 

Mr Nigel Lawson, the Chan- 
cellor of the Exchequer, 
which have refereedprimar- 
fly to the budget deficit. 

The Prime Minister said, 
“Every major country mast 
he prepared to take tie nec- 
essary action to secure a 
sounder balance in the 
world ec on om y." . 

- Without mentioning pose! 
hie farther cuts in interest 
rates, she said that Britain 
stood ready to do its part, 
together with the other 
major industrialised coun- 
tries, no help restor e sta- 
bility to financial markets 
and to maiataia the comdi- 
tlona for continued 


the •special 
of countries 
with n large trade surplus, 
Mrs Thatcher said West 
Germany and Japan -had 
•scope to expand their 
domestic economies without 
the risk of higher infla- 
tion.* 

Moreover, she added, 
•Japan and some newly 
inds strislls ed countries Hke 
South Korea and Taiwan, 
both of which have consid- 
erable surpluses, could and 
should take-farther action 
to open their markets.* 
in relation to the US, Mrs 
Thatcher said the overrid- 
ing need, was that the cats 


in the budget deficit bring 

Presi- 


aegetfated b e twe en 
dent Reagan and Congress 
•should be sufficient to 
re s tore confidence, dearly 
and decisively.* 

Noting contradictory 
advice being offered by US 
economists, she pointed to 
the British experience in 
1881 when n cut in borrow- 
ing was the starting point 
fox more then six years of 
economic growth." 

In response to concern 
among Conservative Party 
backbenchers that UK 
financial policy. 


might 

become too lax^ Mrs 


Samey faces dilemma after 


vote for parliamentary systei 


BY IVO DAWNAY IN RIO DE JANEIRO 


PRESIDENT Jose Samey of Bra- 
zil yesterday appeared undecided 
whether to fight on for a five-- 
term of office and a prest- 
itial system of government 
His quandary comes after the 
committee drafting a new consti- 
tution voted by a narrow margin 
on Sunday to reduce the presi- 
dent's term to four years, giving 
elections next November, and to 


weeks by a plenary session of 
Congress, called to ratify the text 
of the draft constitution. 

But most analysts believe that 
the political tide is too strong for 
the president to rally the 280 
congressional votes needed to 
command an amending majority 


mentaxy system, which would 
sharply reduce his powers,, and 


attempt to win support for a 
five-year term as a more sym- 
bolic head of state. 

There remains substantial 


in the plenary. 

liocians of all parties were 


opposition to a parliamentary 
within the Congress, 


impose a parliamentary system 
March 16. 


from next 
If a parliamentary system is 
introduced, the President would 


be obliged to propose a prime 
ministerial candidate 


and to take 
a more limited role as head of 
state. 

The surprise outcome, over- 
turning Mr Sarney's repeated 
public demands for a five-year 
term under a strongly presiden- 
tial regime, came as a oody blow. 
Technically, both decisions can 
be reversed in the coining few 


Polil 

acting yesterday as If 
tial elections in November 1988 
were a foregone conclusion. 

In a defensive yet ambiguous 
statement released from his resi- 
dence, Mr Samey pledged his 
backing for any conclusion that 
the plenary may reach - inclad- 
tn^the possibility of elections in 

"The president of the Republic 
has no personal ambition to 
defend, beyond the national 
interest," the statement added. 

Mr Sarney's options are lim- 
ited. He could accept a partia- 


system 

however. If those in favour of a 
prime ministerial government 


are voted down, cross-party 
' Jen tial 


backing for direct president!; 
elections in November would be 
likely to rise further 
A new factor that could influ- 
ence Brazil’s precarious political 
balance also emerged yesterday 


when Mr (Bosses Guimaraes, 


majority Demo- 
t Party (PJ 


president of 
era tic Movement Party (PMDB), 
was rushed to hospital tor heart 
checks. 

Mr Guimaraes. a pivotal force 
in Brasilia's shifting alliances, is 
widely seen as a likely choice for 
Prime Minister 


Thatcher said: In the 
short-term It was right to 
provide liquidity for the 
markets, bat in toe longer- 
term yon cannot buy sus- 
tained g r ow th with higher 
inflation.* 

She listed a number of 
economic principles she 
considered fundamental, 
including sound money and 
low inflation, prudent 
finance and living within 
your means, removing the. 
obstacles to enterprise, and 
fhfariy applying the principle 
of flee trade. 

Without referring directly 
to Japan, she said, “No 
country shou ld seek to run 
Its economy and society in 
such a way as to entrench a 
massive and permanent 
trade balance In its favour." 

Meanwhile, before the EC 
heads of government sum- 
mit in Copenhagen early 
next month, Mrs Thatcher 
also stressed the need for 
action to remove distor- 
tions in world trade in agri- 
culture. “It cannot be a 
no-go area for common 
sense, where the laws of 
supply and demand r risen to 
apply." she said." Mrs 
Thatches wpim iiiril a fra 
eral responsibility to 
reduce subsidies “at a rate 
which allows farmers to 
adjust and plan for the 
fiature." 

More generally, Mrs 
Thatcher said the market 
turmoil had blunted neither 
the Government’s determi- 
nation nor to 

terry out its “massive" pro- 
of reform. 


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Reagan cautious over deficit package 

Continued from Page 1 


finance ministers involved in the 
Group of Seven (G7) industri- 
alised nations - Britain, 


France, 


Italy and West Germany - on 


plans for a G7 meeting. Mr L 
son said this would only 


Law- 


called following "adeem 
sures to reduce the (US 


be 
ate mea- 


ls ter, who forecast a farther 
round of European interest rate 
cuts - in particular from West 
Germany, Switzerland and the 
Netherlands - but no direct 
macro-economic stimulation. 


8) budget 

deficit." 

Mr Stoltenberg said the EG 
ministers’ joint pledge to 
improve conditions for further 
internally generated non-infla- 
tjonary growth "did not neces- 
sarily imply any new measures 
from Bonn. 

He was backed by Mr Onno 
Ruding, the Dutch finance Min-- 


However Mr Stoltenberg. 
clearly came under renewed 
pressure from his EC partners 



reform package. 

"There was some concern 
about the rate of economic 
growth in Germany," Mr Lawson, 
said after the meeting. He said it 


was necessary to "re-establish" 
the Louvre Agreement on the 
stabilisation of exchange rates 
and for West Germany and 
Japan to ensure continuing 
world economic growth through 
satisfactory growth in their own 
countries. 

With Congress challenging the 
President on issues ranging from 
trade policy to arms control and 
domestic spending priorities, Mr 
Reagan said that America faces a 
turning point in its history. 
“Americans have it Within 
(their) power to lead the entire 
.world mto a new- age of prosper- 
ity and peace," he said. 


THE LEX COLUMN 



. . * 

Crossed wires in ^ 


Washington 


tax increases and not too mu ch 
creative accounting. A bigger fig- 
ure for cuts next year, with a 
credible chance of them actually 
happening; would be even better. 
If that happens the G7 nations 
could probably meet and agree 
to take action to cut Interest- 
rates, reduce trade surpluses and 
(stimulate other economies and 
all would be well far the time 

being. . 

The corresponding fear is that 
a deal wfll be cobbled together 
(just before the deadline, with too 
[great a proportion of the cuts 
(coming from one-offs hke asset 
(sales and no tax increases. There 
would then be excuses for G7 to 
(refuse to meet on the grounds 
that the US has not done enough 
- UK politicians, for example, 
have said that US tax increases 
are necessary. Thai the dollar 
and equities would be vulnerable 
again. This could be an uncom- 


The sharp rise and fall in the UK 
equity market and the d ol l a r yes- 
terday seems to have been breed 
on a few comments by President 
Reagan.- Over the weekend he 
suggested that budget cuts of 
$30on and $50hn. tma year and 
next were likely, which boasted 
sentiment. But it was -deflated 
again by his remarks yesterday 
that expectations were for a cut 
of at least tSSfbn - required in 
the Gramm-Rudman 
_ Friday - and that 
he thought tax increases would 


be the wrong thing. The FT-SE 
id only 6 1 


100 index dosed only e points up 
having been 50 points higher at 
[its best, and the dollar lost some 
of its earlier gains. 

Hus does not mean that mar- 
kets have a very high regard for 
Mr Reagan. But he did manage, 
perhaps unintentionally, to 
encapsulate the hopes and fears 
for this week's budget deficit dis- 
cussions. The best outcome 
would be agreement soon of cuts 


Food 
Manufacturing 

FT-A Index nrfafive to FT~A 
AS- Share 
104 



would be agreement soon of cuts 
this -year of decently more than 
the forced l23bn, Including some ■ 


extremities of Black Monday, 
even compared with earlier 
crashes, are merely a tribute to 
the market’s new ability to 
absorb a panic without seizing 
xip. And Mr Phelan’s widely held 
anxiety about the capitalisation 
of the stock exchange specialists 
- In the light of the problems 
that did emerge - would, if prop- 
erly attacked, make the market 
theoretically susceptible to even 
sharper shoes. UK broken are 
already boasting that Japanese 


investors are promising to return 
UK because of the 


first to the 

easier exit they enjoyed. 

But the suspicion that pro- 
gramme trading, portfolio insur- 
ance and the rest were to blame 
is hard to shake off. Then again 
if the share market's jumpiness 
-was responsible for the break- 
down of the futures market, then 
the insurers were victims not 
culprits. Perhaps the market 
wonted well enough to allow the 
collapse but not. quite well 
enough to keep the countervail- 
ing instruments in business. 


comes in distribution, exhibi- 
tions and US restaurants, none 
of which are wholly recession- 
proof. Unilever, by contrast, is 
the real thing; a vdlt, bureau- 
cratic, efficiently-run empire, 
purveying soap and margarine to 
the world - and, as yesterday's 
third-quarter figures showed, 
stDl capable of real organic 
growth. 

But Unilever is still subject to 
cycles, though the scale may be 
tiny compared with such as ICL 
The real engine of growth is still 
-its European heartland, where 
margins nave steadily improved 
over the past couple of years. In 
a serious economic downturn, 
margins would be squeezed. The 
group would argue that it has 
recently sold off its cyclical com- 
modity businesses, so it would be 
different this time; but ICI, after 
all, could say the same. 

But there is no denying Uni- 
lever’s robustness. At 47up, its 
shares are on a market multiple 
for the current year, and in 1988 
the outlook is for above-average 
earnings growth for below-aver- 
age risk. Since the yield is a full 
point below the market, this has 
been largely allowed for, but for 
fund managers of a nervous dis- 
position, this must still be a 
soothing stock to hold. 


Investment trusts 


Food manufacturers 


fortable week - and it might be 
all sides 


better if politicians on 
spent it with sticking plaster 
fiver thor toouttdr 


Food companies like Unilever 
and Unigate, both of which 
reported figures yesterday, are 
classic defensive stocks. Besides 
the reassuring fact that people 


have to eat. food companies tend 
to enjoy the 


NY Stock 
Exchange 


It is hard to tafl from yester- 
day’s comments from Mr John 
Phelan, chairman of the New 
York Stock Exchange, whether 
he blames the NYSE's volatility 
on too much or too little marke- 
teffidency. Could it be a bit of 
both? Part of him seems to aide 
with those incorrigible bulls who 
are already arguing that the 


strong cash flow 
associated with low-growth mar- 
kets. And since their products 
mostly do not keep, they cannot 
be stockpiled; so the companies 
do not suffer the convulsions 
which hit engineering or chemi- 
cal companies in recessions. 


when, their customers simply 
iff their 


stop buying and work off 
stocks instead. 

hi Unigate’s case, the image 
runs -a little ahead of reality. 
Leaving aside the slightly myste- 
rious 14 per cent drop in first 
half profits reported yekerday, a 
third of the group's business 


ADVERTISEMENT 


\ EVVS 
REVIEW 


BUSINESS 


Ferranti controls 
for ICI 


Ferranti Computer By wtams , 
Wytbenshxwe Division, is supply- 
ing an electrical r flm Hnn con- 
trol system for the ICI WHtan sta. 
Covering sane 2 square mOes of 
che ro ka l plant and proceaaefl. the 
WDton sitab Bulk Supply System 
will be monitored and canfraDsd 
by a Farad Supervisory Control 
and Data Acquisition (SCADA) 


is foe first electrical distribu- 
tion SCADA system for a major 
industrial ate handled by Pbr- 
ranti. It draws on the experience 
and expertise winch has made 
Ite ran t ! a lending s u pplier of 
$CADA systems to the ' 
electricity boards. 


All change 


^yi in iiwHit currency * m « nii «»i» 
for Barclays Foreign Currency 
Enihange Systems at the tank's 
brandies at He ath ro w Airport, 
Tfermmal 3 are to be provided by 
Ferranti Computer Systems, 
Wytheoshawe Division.. The 
experience gained in the use of the 
present terminal and the views of 
the bank’s cashiers hare been 
tokm into account m the new. 
design. The original terminate 
hove beau hi oonunaous usein the 
baey airport environment tine 
I960. 


Briefly... 


The 
at the 


Science laboratory 
T * of California hsa 
a significant contract to 
Astrai for specialist 
engineering work On minors fir a 
sateffite-berne deep survey spec- 
tometer. 

Ferranti Business Cnmndra 
tfous hag announced the launch of 

it* Berkshire range of handsets. 


• LASERS 


Licence for Japan 


A major K ce man g agreement 
with Kawasaki Heavy Industries 
Limited fir the manufacture in 
Japan of Fmranti AF Series mod- 
ular fast axial flow laser products 
has been a n nou n ced by Ferranti 
Industrial Electronics. 

Kawasaki, one of Japan’s largest 

Tnai nifi»i*»iin<g enmpimi— rnffh p 

turnover last year in excess of 
34.7 bUKon, selected the Ferranti 
Professional Components Divi- 
sion technology because it offers 
the most advanced and com- 
prehenaivB capability in the field 
of carbon dioride lasers, backed 
by the experience of many years’ 
reliable performance in a variety 


of de m and in g: Industrial applica- 
tions worldwide. 

Fbr Ferranti the license agree- 
ment with Kawasaki wfll mean 
that this product wfll be manufac- 
tured for the Japanese market by 
a company with a worldwide 
reputation for the quality of its 
high technology products. 
Kawasaki will supply custout- 


processfaig systems, all 

incorporating tire Ferranti 


of products from its recently 
formed Mechatronks Equipment 
Division. 


• DEFENCE 


Artillery deployment 


Speed and mobility hare always 
been i m p o rt an t factors in the 
effective deployment of field artfl- 


lery. in conventional terms even 
with i 


— modern battery poesticaung 
techniques,, this may be mea- 
sured m hours. On tomorrow’s 
batthfidd. however, survival will 
depend on *gun and ran’ taerira 


a Ferranti FIN 1150 inertial land 
navi gation and attitude reference 
system manufactured by Fer- 
ranti Defence Systems, Naviga- 
tion Systems Department, end 
linked to t he sight and fire content 
of a towed. FH77B field howitzer 


Before of Sweden , 
demo n s tra ted that substantial 
savings in the time required to 
dqpby a field gun can be achieved 
by equipping the gun with an 
autunomoia) postinming, system. 
The triak were carried out using 


the Swedish Army Artillery 
School, the gun which had a crew 

of only 4 men was deployed and 4- 
rounds fired in 2 minutes 15 
seconds. The gun was then rede* 
Pitted approximately 60 metres 
and 3 further shots were fired in 
lees than 3 minutes. 


The good news is 


FERRANTI 

Selling technology 




Investment trusts remain the 
Cinderellas of the investment 
industry. In the heady days of 
■the bull market earlier this year 
their steady . performance went 
unnoticed among the loud boasts 
of the unit trust managers. Since 
the collapse four weeks ago they 
have underperfomed the overall 
market, and the average dis- 
count to net asset value has 
.nearly doubled to around 23 per 
cent. In a bear market dosed -end 
investment trusts are in a stron- 
ger tactical position than 
.open-ended unit trusts, which 
are sometimes forced to sell 
shares at distress prices to meet 
unit-holder redemptions. Invest- 
ment trusts have no such pres- 
sures. Part of the reason for the 
sector’s underperformance is 
that some trusts were relatively 
highly geared on the eve of the 
crash, and the heavy US dollar 
exposure of many trusts has also 
worked against them. However, 
'shareholders in investment 
trusts were always able to deal 
during the worst days of the 
recent share collapse - a point 
which would be worth highlight- 
ing in the industry's battle to 
overcome the advertising hype 
of the unit trust industry. 


r' : • 
u ' i* - 






*1 








SfcRVING 
SHIPS. POR 
IN DUS IKY 




SECTION n - COMPANIES AND MAR KE TS 

FINANCIAL TIMES 


Tuesday November 17 1987 


6H, goldan htllb * P° lwMV 

They vea'v let tw keep my 

fra,..., 

SeniorW 
r ^ 'j Secretaries 

TREPH0NE;01-6061BH 


Harcourt Brace pulls in 
$334in from asset sales 


BY AHATOLE KALET8KY M NEW VORK 


HARCOURT BRACE Jovanovich, 
pie heavfly indebted US publish- 
ing company which recently 
fought off a takeover bid from 
Mr Robert Maxwell," the UK pub-' 
lisher, has sold its magazine and 
school supplies businesses for 
$334m. _ _ : 

The two companies, HBJ Pub- 
lications and Beckl ey-Cardy , are' 
being bought by an investment 
group led by Mr Robert Edgell, 
who is currently HBJ’s vice 
chairman, and by Kidder Pea- 
body, the securities house owned 
by General Electric. 

In terms of numbers of Cities, 
HBJ Publications is the biggest 

E ublisher of professional and 
usiness ^periodicals In -Jthe US.. 
Beckley-Cardy is the country's 


Mr Edgell was the executive 
put In charge of HBJ's asset dis- 
posal programme lit August, 
shortly after the company took 
on $2L5hn of debts in -what has 


been, described as a “scorched 
earth* defence against the bid 
from Mr Maxwell. HBJ’s new 
debt was largely used to make a 
cash distribution to shareholders 
in competition with Mr Max- 
well’s ouer. .’ -I'. 

■' The price fetched by HBJ Pub- 
lications and Beckley-Cardy was 
somewhat disappointing in view 
of several - statements made by 
Mr Edgell that the two busi- 
nesses were worth between 
$35Qm and 8400m. 

Mr Edgell said- yesterday that 
the discount to Ids earlier esti- 
mates was entirely -attributable 
to, last' month’s stock market 
crash and its aftermath..*! had 
repeatedly said these businesses 
were worth at least $350xn, with 
8400m as an upper .estimate; but 
the price of every business in 
America went down last month,* 
he said. Mr Edgell went on to 
describe the price reduction as 
“very modest, " given the events 
of October. . . . 


Despite the somewhat lower 
than expected mice, Mr William 
Jovanovich, HBJ's chairman, 
pronounced himself pleased with 
the sale and said that no farther 
asset disposals would be required 
to service his company's debts. 
HBJ was now *a year, early" in 
fulfilling the pledges on asset 
realisations it had made to debt- 
holders and "I do not foresee a 
need to sell other HBJ busi- 
nesses, departments or. divi- 
sions," he said. 

The purchase is bang financed 
by means of a bridging loan 
from Kidder Peabody, which will 
also be a substantial equity 
holder in the new business, to be 
renamed Edgell Communications 
Inc. Other equity partners will 
include members of the HBJ 
Publications and Beckley-Crady 
management and two privately 
held companies with extensive 
interests, m the communications 
business - Wicks Communica- 
tions of New York and.IAbovltz 
Corporation of Duluth. 


Bass moves on Bell & Howell 




BY OUR NEW YORK STAFF 

TAKEOVER speculation intensi- 
fied yesterday around Bell ft 
Howell, the Chicago-based busi- 
ness equipment and information 
services company, "with the 
announcement that Mr Robert 
Bass of Fort Worth, intends to 
boost his group's stake in the 
company to 26 per cent or more. 

Mr Bass, a wealthy investor 
who has been rapidly diversify- 
ing his family fortune out of the 
oil business and into 'communi- 
cations, put Bell & Howell “in 
play’" in . June, when he 


announced that he had bought 9' 
per cent of the company's stock. 
Since then, two other potential 


bidders - Macmillan, the huge US 
book publisher, and Maxwell 
Communications of Britain - 
have entered the fray, boosting 
the share price by 50 per cent, to 
yesterday s lunchtime level of 
260%. fills price values the 
whole company at around 
S650m. . 

Mr Bass said yesterday that he 
had already increased ms stake 
to 16.2 per cent and was filing 


with anti-trust authorities for 
permission to raise it farther to 
25 per cent. He added that his 
group might make farther appli- 
cations to buy 60 per cent or 
more of Bell ft Howell within the 
next year. 

The Ban filing follows a state- 
ment last week from Mr Robert 
Maxwell that his company had 
boibght 2.3 per cent of Bell ft 
Howell and had applied for clear- 
ance to raise its stake to 50 per 
cent or more. 


K mart earnings rise 23% in quarter 


BY OUR FINANCIAL STAFF 

K MART, the world’s second-lar- 
gest retailer, increased third- 
quarter net income 23J> per emit 
to SllO.lm. compared with the 
same period of. lfiBft 
Third-quarter sales rose 7. per 
cent, io .SSJffm, from S6J58bn in 
the same quarter last jrear._and 


« b»w in comparable stores, open 
a full year, were up 3.6 per cent. 
Earnings per share were 64 
cents, compared with 44 cents, 
after adjustments for the three- 
ib-two stock split cm June 5 this 

yea*. 

„ Income In the firstr nine 


months reached S371m cm record 
sales of f I7.87bn and an increase 
of 23 £ per cent from the compa- 
rable Idee figure of$299.7m. 

Earrings per share in the nine 
months were 4l JB2, compared 
with tl.50 in the same period 
last year. 


Pan Am 
takeover 
attempts 
intensify 

By Roderick Oram hi New York 

ATTEMPTS TO take over Pan 
American World Airways 
intensified on several fronts 
yesterday, as its nw»«na tried 
to attract another bidder andi 
a small New York financial 
services «•*■«" p*"y prepared toi 
launch an offer. 

An official from a coalition 
of Pan Ain’s anions met a rep- 
resentative of Mr Jay Prlts- 
ker, the Chicago investor 
whose family owns 69 per 
cent of BranUf Airlines, the 
Hyatt hotel chain and other 
businesses, who has been in 
contact with Pan Am’s man- 
agement since last summer. 

The Pritzker family took 
over Brsniff in 1984, when ft 
was under protection of the, 
bankruptcy courts. The sir-' 
line has continued to strug- 
gle, increasing speculation 
that the family might try to 
sell or merge ft with another 

atriiae. 

Union negotiators said the 
Pri takers might be prepared 
to bid if the unions agreed to 
labour cost savings, worth 
about 8200m a year. 

Meanwhile, Tower Finan- 
cial, which is mainly a New 
York debt collection agency, 
said it was shout to unveil an 
offer. 

Last Friday, Pan Am 
rejected an offer from Mr 
lQrk Kerkorian, a Los Angeles 
investor whose interests 
Include MGM Grand Airline. 
He offered to invest 876m, 
raise - another 8400m and 
assume 81bn of - debt In 
exchange for less than SO per 
cent of Pan Am’s equity. 

Pan Am said ft rejected the 
offer because it was too con- 
ditional, with no assurances 
that Ur Kerkorian would 
achieve labour concessions or 
bo able to raise money to 
inject into the airM»e- 
The carrier, which has 
enjoyed a sharp tnmround 
from heavy losses to a third 
quarter f63m net profit, 
hopes to win union approval 
by the end of the year for 
8180m in cost savings. ’• 



OUR MEASURE B REMUS. 




A t Canadian Pacific, weVesimplfied 
wir business mix but we haven't 
stopped growing, to fed, we’re always 
looking fclr ways to develop the M potential 


ri) i ■ *: \ ! Im; i i 1 i i! 'i^WiYTTi 


is a profit leader in its industry. The point is, 
our goal in any business is to be the best 
And when the (w^ortunitytoeiqjand 
comes along, well be ^ ready. Our eyes and 
ears are always open. And that keeps our 
resuhsgrowii^toa 


GuBtfdned tome (unstwfiied) 

(in mfflkw of SCAl, except ananas per share) 

3idQunter Fra Nine Months 

lf *7 1986 NO 1986 

IfaaponsHtos tlU t U 1 1 ML* $ 49-9 

OfhndGas tfJ 142 141.1 82 

Forest Prodra 45 L 3 &0 111.8 62 I 

Sted and Industrie] Products U ( 19 . 6 ) (' 44 ) ( 33 . 5 ) 


Other Bminceei 
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IViffFMiimrti Bttbcflcs 
Net tame before 
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1 U 19.5 

I 5 J ( 52) 
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AAtrednanUnaiy 


51.4 437 JS 58.5 

29-9 ( 33 L 6 ) 

813 tWU : K2741) 

0.17 f 144 . 8 0l20 

037 t 7M « 092) 


Canadian Pacific Limited 

Building lasting Values 


Move could prompt consolidation among UK chip manufacturers 

Plessey considers buying Inmos 


BY TERRY DODSWOHTHM LONDON 


PLESSEY, the UK electronics 
and defence group, is seriously 
considering an ambitious plan to 
acquire Inmos, the loan-making 
semiconductor group, in a move 
which could trigger a wave of 
consolidation in the UK chip 
manufacturing industry. 

The Plessey interest, still at an 
early stage of didcussian, coin- 
cides with a wide ranging debate 
in Whitehall on the future of 
semiconductor production in the 
UK. 

A confidential report on the 
Industry's prospects was recently 
completed for the Department of 
Trade and Industary (DTI) by Mr 
Ian Mackintosh, the electronics 
consultant, who is known to 
have strong views on the need 
for consolidation of chip produc- 
tion in Britain. 

Any takeover would be likely 
to involve the DTI because of 
government support programmes 
for the semiconductor industry. 

Inmos, launched in the late 
1970s with the backing of gov- 
ernment funds, was put up for 


sale by Thom EMI, its current 
owner, earlier this year. 

A detailed prospectus on the 
company has recently been cir- 
culated to a handful of interested 
groups by Goldman Sachs, the 
merchant bank, which has told 
clients that Thom is willing to 
consider a fall or partial sale. 

Plessey is believed to have 
shown the most interest in an 
agreement, with significant sup- 
port coming from Sir John Clark, 
chairman of the group and a 
strong advocate of its steady 
expansion in semiconductor pro- 
duction over the last few years. 

Industry executives say a take- 
over offer depends very much on 
the terms which Thom is pre- 
pared to accept and a more 
detailed analysis of how the 
Inmos product range would fit 
with Plessey's own specialised 
semiconductors. 

Although Inmos is losing 
money after a period of 
break-even earlier this year, a 
deal might be attractive to Ples- 
sey as a way to achieve rapid 


growth. 

Plessey is keen to expand its 
semiconductor business from its 
present annual turnover of just 
over SlQOra to &300m by the 
early 1990s. and Inmos, with 
sales expected to reach about 
tlOOm this year, would take it a 
long way towards this target 
An agreement between the two 
companies would also be a sig- 
nificant step in restructuring the 
industry along the lines advo- 
cated by some specialists. 

Britain's weakness in semicon- 
ductor production was the sub- 
ject of a recent paper by the elec- 
tronics committee of the 
National Economic Development 
Office, which argued that the 
government and Industry ought 
to work together to retain a UK 
base in this sector. 

Many industrialists believe this 
co-ordination could be achieved 
effectively only if a more size- 
able enterprise were created in 
Britain, with the muscle to 
impose itself on world markets, 
while this is not a view that is 


shared in the City of London - 
where analysts are sceptical 
about the potential for profits in 
such a highly competitive sector, 
it is one which is likely to have 
won the backing of Mr Mackin- 
tosh. 

In the past Mr Mackintosh has 
emphasised the need for scale in 
semiconductor production, and 
the importance of the industry 
to the health of the rest of Brit- 
ish manufacturing. The UK is 
currently running a big balance 
of trade deficit in microchips. 

Government action on Mr 
Mackintosh's report, however, is 


Royal Bank talks with broker 


BY ROBERT OIBBENS IN MONTREAL 


THE ROYAL Bank of Canada is 
again negotiating with Dominion 
Securities Inc, the country’s lar- 
gest investment dealer, with a 
view to taking effective control. 

Toronto investment observers 
say talks have reached an 
advanced stage and a tentative 
offer of around C$27 a share by 
the Royal has been mentioned. 

Dominion Securities stock was 
up more than four paints to C$20 
last week, still down from a high 
of just over C$28 before the 


October 19 market crash. 

The Royal, the biggest of Cana- 
da's chartered banks and the 
only one among the big five yet 
to tie a knot with a major invest- 
ment dealer, is expected to buy 
all the Dominion Securities 
shares held by the public and 
about half held by the manage- 
ment team. This would give 
Royal about 60 per cent of 
Dominion Securities at a cost of 
nearly CSeoOm (US$454-5m). 

The future of Orion Royal 


Bank Limited in London would 
be linked to the outcome of Roy- 
al's »*iint with Dominion Securi- 
ties. 

A week ago Mr Allan Taylor, 
Royal Bank's chairman, said the 
bank planned to buy an Invest- 
ment dealer at the right time 
and at the right price and that it 
was talking with several firms. 

Yesterday the bank refused to 
comment farther on reports that 
the focus was now on Dominion 
Securities. 


ICH agrees to acquire Southmark 


BY OUR FINANCIAL STAFF 
ICH, an insurance company 
based in Louisville, Kentucky, 
has agreed to acquire South- 
mark, m a stock swap valued at 
about 8315m. 

The terms call far. the Dallas- 
based financial services c on cern, 
which had revenues of 8872m 
for the fiscal year ended June 30, 
to be merged into a unit of ICH. 


If approved by both companies’ 
boards, shareholders and certain 
regulatory agencies, among oth- 
ers, Southmark holders would 
receive two ICH common shares 
for each three shares of South- 
mark common. 

In New York Stock Exchange 
composite trading on Friday, 
South mark’ 6 shares closed at 


S6JB75, up 76 cents. In American 
Stock Exchange composite trad- 
ing, ICH's stock dosed at $7.76, 
up 1225 cents. 

The proposed transaction, 
announced yesterday, would 
allow ICH to distribute South- 
mark’s financial service prod- 
ucts. 


likely to depend on the lengthy 
review of science and technology 
policy going on in WhitehalL 
Separately, ministers in the 
Department of Trade and Indus- 
try have recently been sent a 
report advocating continuing 
government support for the 
semiconductor industry now that 
the official Alvey programme for 
research into advanced informa- 
tion technology is drawing to a 
dose. 


Allied Irish 
may postpone 
US bank deal 

By David Lmcaflas, Banking 
Editor, In London 

ALLIED IRISH Banks, the lead- 
ing Irish banking group, may 
postpone a planned increase in 
its 49.5 per cent investment in 
First Maryland Bancorp because 
of changes taking place in the 
US banking market. - 
Mr Niall Crowley, AIB chair- 
man, said yesterday that under 
the original 1983 investment 
agreement. Allied Irish would be 
able to raise Its stake to 51 per 
cent at fhe end of this year, 
eventually rising to 60 per oentiA 
decision would be taken next 
month. 

However, a majority holding In 
First Maryland could complicate 
the Baltimore-based bank's plans 
to form regional alliances with 
other US banks. Under account- 
ing rules, majority -owned banks 
have fewer options on account- 
ing far acquisitions. 


Our most feast 


November 17, 1987 


The General Electric Company, p.l.c. 


through a wholly-owned subsidiary has acquired 


Lear Siegler Astronics Corp. 


Developmental Sciences Corp. 


Lear Siegler Aerospace Products 

Holdings Corp. 


The undersigned acted as financial advisor to 
The General Electric Company, p.l.c. 


Salomon Brothers Inc 


OneNewYoikRaza 1 NBw\brKNew\bik100W 
Atlanta. Boston, Chicago, DaJLas, Los Angstes, San Francisco, Zurich. 
Affiliates: Frankfurt, London, Tokyo. 

Member of Major Scarifies and Commodffies Exchanges. 









26 


Company Notices 


CONSOLIDATED COMPANY MJLTTONTON RONE, LIMITED 
ItehUiM Ni IMMHDfi 

GBfQUALAND WIST DIAMOND MINING COMPANY. DUTOZISPAN MINE. 
LIMITED 

Kqtmdai Na flMCISM 
flhrtlwiiwtorfbitlsW I iWn!8»U>i AMa> 


MCLUUTKM OF DMDENDB 

Notice is hereby intd flat tie dlrecton of the iboveroesbotied conpaucs have 
deduct dividends m respect of the six months cadfng 31st December. 1987, 
payable so sbaretakien rracnend in the books of Urn respective compmuea i« the 
dose oTbasmcH on l&h fiecctnber 1987. The dtafandskare beat dedsred u the 
currency af the Republic of Sooth Africa. 

Dividend warrants win be pos t ed horn the Kimberley and Varied tOngdoa 
wmftf tjffict* on nr sheet 2nd rcbiuat v . 1988. tein md thstEhaldcn paid by 
Ik United Kingdom R egistrars will receive theirmrkkad in United Kingdom 
currency converted al the rate of exchange appbcabte od 21st December, 1987 lea 
appropriate taxes. Any such duretaAdm may, however, deca to be wo n Sflsdh 
African currency, provided that any inch request is maetved st wwipwfc s bustor 
offiecs in Kmtoeriey or the United Kingdom oo or be£m l8tb Decembe r. 1 987. 
The ordinary share uusfer registers and mimn of mombeo win be dosed from 
I9lb December 1987 to 31st Dec em ber 1987. both days Inclusive. 

The effective rate of nonresident sharefaoiden* tax is IS per cent. .. . 

The dividend is payable subject to conditions which can be in qx y t c d at the bead 
•■ii fl ff frff of tbe coin pubes sod also at the offices of the companies 

nimfrr nffhn in IT i mhrifrT inrt thr 1 l ~^"‘ Muhsi 


Company 


Op oMto d COmpnay BaUJb t K ei n 
hC aa, » inhad 

Griqntaod Wen Diamond Mitring 
C o m p an y. D utoit s px a Mine. Limited 


Sooth African C ur re ncy 
per Share 


4S cents 


20.5 


By order of die Boards 
Fbf and on bduff of 

ANGLO AMERICAN CORPORATION OF SOUTH AFRICA LIMITED 

London Secretaries 


London Office: 


40Holboro Viaduct 
London EC1PIAI 

17th November, 1987 


J CGicosmith 

Office of United Kingdom Transfer 

HHwallarimfUaM 
6 Greatcoat Place 
London, SWlPlPL 


TRANSAMERICA 
CORPORATION 
US DOLLAR 30,000,000. - 
FLOATING RATE 
NOTE 1990 
(Coupon No 6) 

Pursuant to note conditions, notice is hereby 
given that for the interest period from 13th 
November 87 to 13th May 88 an interest rate 
of 7 % pet per annum will apply. 

Amount per coupon - US dlrs 1,927.43 
Payable on 13th May 1988 

Reference agent 

The Long-Term Credit Bank of Japan Ltd, 

Truism Bnuzch 
Dated 17 November 1987 


Financial Times Tuesday November 17 1987 


INTERNATIONAL COMPANIES & FINANCE 


Better results and higher 
payout at Barlow Rand 


BY m JONES M JOHANNESBURG 


that official measures tend to 
understate real economic activity 
as they do not measure the grey 
economy. 


3ARL0W RAND, the South Afri- 
can mining and industrial group. 

Increased pre-tax earnings by 
more than a quarter in the year 

The group's South African 
“*"■* industrial operations registered 

Consolidated turnover, which 
excludes the group's managed 
gold mines, rose to R16.6bn 
(SS.3bn) from R14.6bn and pre- 
tax profits were Rl-36bn against 
Rl.OBbn. 


Mr Warren Clewlow, the chief 
executive, said yesterday that 
trading results should improve 
again this year despite cautious 
estimates of the country’s Likely 
economic growth. He believes 


the largest growth, , 

the food interests under C. 

Smith. The mining and minerals 
subsidiaries were constrained by 
sanctions and oversupply In coal 
export markets, and the interna- 
tional division, of which J. Bibby 
of the UK is the largest compo- 
nent, Increased Its profit contri- 
bution slightly despite poor trad- 
ing results from the American 
packaging subsidiary. 

In the past year the group 


reduced its consolidated debt by 
R489m from R2.7bn at the end of 
September 1986. Mr Clewlow 
said that the group planned to 
spend about RIJibn on capital 
projects this year but believed 
this could be financed from cash 
flow without resort to 
borrowing. 

At the end of September 1987 
the debt to equity ratio was 60 
per cent, against 63 per cent a 
year earlier. Net earnings rose to 
275.6 cents a share from 9*3 3 
cents and the total ordinary divi- 
dend has been raised to 100 
cents from 80 cents. 

Barlow Rand's, largest share- 
holder is Old Mutual, South Afri- 
ca's biggest insurance group. 


Cigna leaves South Africa 


BY OUR .JOHANNESBURG CORRESPONDENT 

of this year. Its underwriting 


profit during the period was 
R8.4m and its pre-tax profit, 


CIGNA, one of the largest US 
insurance companies, has 

divested from South Africa by _ ^ 

selling its interests to local man- which includes investment 
jeraent and staff for an undis- income, was R 13.6m. 
osed sum. 

Cigna's South African offshoot In Johannesburg yesterday, Mr 
wrote R82.5m ($41.4m) of gross Bob Greenwood, 5ie South Afri- 
premrums in the first 10 months can managing director, said that 


Cigna's divestment had been 
taken because of political pres- 
sures in the US. He said that a 
trust had been established to 
hold the South African compa- 
ny's shares on behalf of die 98 
directors and staff members and 
that dividends would be declared 
as a fixed percentage of profits. 


First Pacific 
buys stake In 
Thai group 

By Our Financial 8taff 

FIRST PACIFIC International, 
the Hong Kong listed regional 
trading company, is to take 
direct control of a 32 per cent 
stake in Belli Jucker, a Thai dis- 
tributor of consumer, pharma- 
ceutical and engineering prod- 
ucts. 

This oomes as a result of a 
further reshuffle of its links with 
Hagemeyer, first Pacific's 66 per 
cent-owned Dutch offshoot, 
which currently holds the stake 
in the Bangkok quoted company. 

First Pacific plans to build a 
federation of trading and distri- 
bution companies which would 
have product lines that comple- 
ment its marketing activities in 
other countries within the 
region. The deal, which makes tt 
Berll Jucker 's largest share- 
holder, is valued at some 
USSl2.8m. The Thai company 
had net profits of S3.6m in the 
year to August an turnover of 
5132.6m. 


Western Mining places 
rights issue shortfall 


BY OUR SYDNEY CORRESPONDENT 


WESTERN MINING, one al Aus- 
tralia’s largest gold producers, 
has successfully placed a short- 
fall of 48m shares from its recent 
AS838m <USS574m) rights issue. 

The one-for-four issue of 168m 
shares at AS6 per share closed on 
November 9. But it coincided 
with the collapse of world share 
markets, which hit Australian 
shares more than most 

Western Mining's paper fell 
from a year's high of AS 12 to 
below the AS5 mark. Last 
Wednesday the price was AS4.36, 
but it rained with the to 

dose yesterday at A&L24, up 16 
cents. 

Yesterday, the group said it 
had arranged for Australian and 
overseas Investors to take up the 
shortfall at the issue price. 

The group said its financial 
advisers believed that in the cur- 
rent volatile market there was 
no prospect of selling the short- 
fall above the Issue price. 

News that the fun amount has 


now been raised follows last 
Thursday's annual meeting at 
which Sir Arvi Parbo, the chair- 
man, forecast operating profit 
for the first half of this year well 
in excess of AS83.5m 

•A takeover plan has been 
abandoned under which control 
of Wormald, tbe Australian fire 
protection and security group, 
would have passed to Bell Corpo- 
ration, an investment company 
controlled by Mr Phillip Cave. 
But ReiL which has 17 pm- cent 
of Wormald and management 
control, is to put up an alterna- 
tive proposal which would result 
in a merger of the two compa- 
nies' interests. 

The original move was 
announced on October 16, just 
before the world share price col- 
lapse. Reil was to have acquired 
another 23 per cent of Wormald 
through the purchase of 4L3m 
shares at A$5 - a considerable 
premium over the then prevail- 
ing market price of A83.50. 


ANZ lifts 
profits and 
sees more 
growth 

By Cfaria IWw nqaB in Sydney 

AUSTRALIA AND New Zeal- 
and B a nkin g Group CAJEZ), 
the smallest of Australia’s 
three private sector trading 
banks, yesterday reported a 
22 per cent rise in after-tax 
profits for the 'rear and 
forecast continued growth. 

Group operating profits 
for the year to 


after tax and provisions, 
compared to ASSl&Am. 

The improvement ci 
from all major activil 
but the result was 
by the fall inclusion of the 
New Zealand group results 
compared with 76 per cent 

Three months* profit fkom 
McCsnghsn Dyson, the Aus- 
tralian stoekbroldng firm, 
was also included once the 
bank moved fro m 60 per 
cent to full ownership In 
Jane. 

Provisions for bod and 
doubtful debts charged 
against profits were 
reduced by 11 per cent to 
AS1 74m, bnt another 
ASlS8m was transferred to 
the general provision repre- 
senting an abnormal item. 

Tbe bank said Its expo- 
sure to borrower s in coun- 
tries rescheduling debt 
amounted to ASLSZbn, 27 
per cent of relevant expo- 
sure and 2A per cent of the 
group's total assets. The 
equivalent asset figure in 
1986 was 8 per seat. 

In the case of fonr 
unnamed countries, the 
bank said It was deemed 
prudent to make specific 
cross-border provisions 
against potential losses. 

ANZ said it expected a 
slowing in world econo mi c 
activity and in its own 
areas of operation but it 
had shown it could Increase 

C ss revenues faster than 
rise in costs, was becom- 
ing less depesdentou inter- 
est margins and had a diver- 
nlty nf mu mm sl m sais 
"With much Improved 
returns forecast from off- 
shore units in 1987-88 and - 
in the knowledge that the 
ANZ culture is now b ecom- 
ing more entrenched glob- 
ally, directors have a 
degree of confidence that 
results in the umuii year 
wUl again show 
growth,” the bank i 


Japanese property 
groups well ahead 


BY IAN RODGER IN TOKYO 
JAPAN'S three top property 

companies have reported sharp 

increases in profit in the six 
months to September, thanks to 
booming market conditions. 

Mitsui Real Estate, the lar- 
gest p r operty group, said its pre- 
tax profit was up 63 per cent to 
Y17.9bn 0*31 .7m) on sales of 
Y180.6bn, up 45 per cent Net 
earnings per share, jumped from 
Y9.68 to Y13.38 and the directors 
boosted the interim dividend 
from Y4 to Y4JS0 per share. 

Mitsubishi Estate, which 
owns some of the most presti- 
gious land In downtown Tokyo, 
said its pre-tax profit rose 12A 
per cent to Y30.9bn, thanks to 
steady rental earnings and lower 
borrowings. 

Total sales were up 7.4 per 
cent to Y106.7bn, mainly because 


of ft 30.1 per cent rise in the 

rip-rfg n , con structi o n supervision 
and contract work division. Sales 
in file land and buQding rental 

division were up 6.8 per cent. 
Real estate turnover dipped 0.3 
per cent because of a slowdown 
xn new condominium sales. 

■ Sumitomo Realty, the third 
group, reported a record 
:slf pre-tax profit 



UUIU — . . . V 0 — , 

earnings from building leasing. 
Sales grew 29.3 per cent to 
Y57.8bn. 

All three companies are fore- 
casting further sales and profit 
improvements in the second 


impi 


Kyocera earnings up by 
34% at six months 


BY CARLA RAPOPORT M TOKYO 

KYOCERA, the Japanese fine 
ceramics maker, boasted profits 
for the six months ended Sep- 
tember bu 33.8 per cent to 
Y20.6bn (S 161. 6m), largely 
because of the improvement in 
demand for semiconductors in . 
theperiod. 

The company, which is the 
world's largest maker of ceramic 
packages tor integrated circuits, 
said sales jumped by 10 per cent 
in tile six months on the hade of 
a recovery in demand far micro- 
chips. Overall sales an a non- 
consoHdated basis were Y131bn 


compared to Y119.3bn last year. 


The company said the profit 
jump was also due to a reduction 
in costs and higher interest and 
dividend income. These factors 
more than offset a 27 per cent 
increase in the cost of sales and 
an exchange lass of Y300m. 

Sales of semiconductor 
ceramic packages jumped by 
nearly 15 per cent, while sales of 
electronics and optical equip- 
ment went up by 31.1 per cent 
and 10.5 per cent respectively. 

The company said it expects 
pre-tax profits to hit Y43.8bn in 
the full year on sales up 14 per 
cent to YRTBbn. 


Tax credit puts Carter 
Holt Harvey in black 


BY OUR FINANCIAL STAFF 

CARTER HOLT Harvey, the New 
Zealand forestry group, boosted 
net profits by nearly a quarter in 
the fust half to September to 
NZ$60m fUSS36.6m) compared 
with NZS48.1m - although at the 
operating level it incurred a defi- 
cit 

loss of NZ*3m was 
funding 
costs as well as the absence of 
exchange gains and export 
incentives. Operating profits in 
the comparable period of 1986 
were NZS46.6m, and the higher 
bottom-line o u tcome this time 


The' 
blamed on 


stemmed from a tax credit, s 
higher share of associated prof 
its, and an extraordinary credit 

This last item, bringing in 
NZ$9 .2m, stemmed primarily 
from financial transactions with 
its Chilean investments. Carter 
Holt said yesterday there had 
been a serious reduction in mar- 
gins in both domestic and export 
trading in both New Zealand and 
Australia. Interim sales also 
dipped, to NZ$635m from 
NZ$646.4m. 

For the fuU year, it expected a 
net profit of NZ$1 05m plus 
extraordinary gains of NZS45m. 




TfcfaaHii uumjWM i ff at a matter of record tMly. 


AVIS 


AVIS, INC. 

060,000,000 

Avis, be. 

Employee Stock Omtecdrip Trust 

Bridge Financing 

We provided the 
financing to complete 
this transaction 


Drexd Burnham 
Lambert Group 

September 1987 


Kkinwort Benson 
limited 



This announcement appears tu a matter of re cor d only 

The securities have not been registered under the 
United States Securities Act of 1933 and may not be offered 
or sold tn the United States or to United Slates persons 
as part of the distribution 



AVIS, INC. 

(incorporated in the State of DeUnoare, USA. 
rclth limited liability) 

£50,000,000 

5JA% E x chan g eab le S ub or din ated Deben tu res doe 2002 
Exchangeable far Qftfinary Shares of 25p Each 
of 

AVIS EUROPE pic 

Kkinwort Benson Limited Drexei Burnham Lambert 

International limited 
Cazenove&Cb. Generate Bank 

Morgan Grenfell & Co. Limited Credit Lyonnais 

Dresdner Bank EBC Amro Bank Limited 

AUapshcM 

Swiss Bank Corporation Yamaidri International 
international Limited (Europe) Limited 

October 1987 


This announcement appears as a matter of record only. • 


AVIS 


AVIS, INC. 

(incorp o rated in the State of Driaraure, USA. 
with limited liability ) 

Private Placement of 
002^52,000 

7y*% Exchangeable Subordinated Deben tur e s 
doe 2002 

Exchangeable far Ordinary Shares of25peadz 
and 

3,000,000 Ordinary Shares of 25p each 
of 

AVIS EUROPE pic 

We acted as financial advisers 
to Avis, Inc. in the private placement 
of these securities 

Kkinwort Benson Limited 


October 1987 






f,i 





















s 


hs 


m 


Cartel 

black 


Financial Tim»Ty csday November 17 1987 

INTL. COMPANIES & FINANCE 


27 


Strong demand boosts Astra 


‘y 

% 

j> 

1 • * . t ■ j r** 
3:1 

»• ‘ *- 


BY SARA WEB8 M STOCKHOLM 

ASTRA, the Swedish pharmaceu- 
ticals group, has In c rea se d prof- 
its by 11 per cent, for the first 
nine months, helped by strong 
demand in Western Europe ana 
& shift towards a more profitable 
mix of products, particularly car- 
diovascular and .respiratory dis> 
ease agents. 

Profits, -before aflocati on a and 
taxes, rose to SKrLOlba 
C$ 166.8m), compared - with 
SKr907m the previous year.' 

The group expects full-year 
profits before allocations and 
taxes to show an 11 per: cent 


increase on {he 1986 figure of 
SKrl.lfihn. - • - 

. Astra said- that it expects to 
launch two. important, new prod- 
ucts next year Losec, an anti- 
peptic ulcer agen t, . add Plendil. 
which would be" used for the 
treatment of high Wood pressure. 

Astra that Losec, which 
would compete with Glaxo’s and 
S mith TQin e‘8^ anti-ulcer drags, 
greatly reduces the ‘ healing 
period for ulcers. 

Losec has sd far received 
approval In France, whereas 
Plendil has been approved In 


Denmark, Australia and New 
Zealand. Applications in seven! 
other countries are. awaiting 
approval . 

Group sales rose by 10 percent 
to SKx&958bn, with 83 per cent 
going overseas. - Most of- the 
growth came, from strong 
demand in Western Europe, but 
Astra said that sales to the US 
and Canada have been adverse}? 
affected in Swedish kronor 
terms s by the dollar’s felL 

The company is heavily Infto- 


per cent of sales arise outside 
Sweden. Turnover growth in 
West Germany • has been - rela- 
tively rapid in recent yearn. 

The strongest growth in sales 
came from the respiratory dis- 
ease agents division, where sales 
increased by 21' per cent to 
SKi907m. Cardiovascular agent 
sales grew by 8 per cent to 
SKrLlfibn, while local anaesthet- 
ics sales rose by 8 per cent to 


enced by foreign cureny move- 
ments, given that 


Astra’s profits during the first 
six months of 1988 improved by 
. about 6 per cent to SKr674m, 

more than 80 after financial ite m!*- 


BMW sees continuing growth 


BY Offl FINANCIAL STAFF . 

BMW, the West German motor 
expects higher -sales and 
iveries for 1987 and at least 
steady profits. 

The company said sales were 
up 17 per cent to -OMl i 2.67bh 
($7.52bn) in the nine' months 
ended September. -Deliveries 
improved by 0.2- pier - cent to 
328,455 units m the period. 

BMW forecast an orders surge 
for its recently upgraded 30O«e- 
ries models and continued strong 
sales of the top-of-the-line 700 
series. This should smooth out 
any demand 
from the collapse in 


markets, BMW said. ' . 

Last week, Porsche announced 
shorter work' hours and produc- 
tion cuts because of the stock 
market crash and a sudden 
downturn In -demand for: luxury 
goods. This report sparked con- 
cerns that other German motor 
groups would be - similarly 
affected. Like Porsche, BMW is 
. heavily dependent on US sales. 

BMW, said it expects profit to 
steady or climb compared with 
1986, when net earnings totalled 
DM337 ,5m. Sales should increase 
from last year's worldwide 
figures of DMIT-Shn, it 


Sales of the battom-of-the-fine 
300 series fell in the nine-month 
period as customers awaited an 
upgraded version to arrive in 
showrooms, the company said. 
BMW said it would shortly 
announce a new motor for the 
four-cylinder 3181 and 3161 mod- 
els. * The group would also be 
introducing touring car vers i ons 
designated 3201. 

Since formally introducing the 
12-cylinder version of the 700- 
ries limousine just ahead of the 
■ Frankfurt motor show 'in -Sep- 
tember, the model has become 
the top seller In its class in 
Europe, BMW said. 


Japanese in Paris deal 


BY PAUL BETTS Hi.PARtS 

KOWA REAL Estate Investment, 
the Japanese 
whose shareholders 
Japanese companies like Nissan, 
Hitachi, Nippon Life insurance 
and the Industrial Bank ' of 
Japan, h as invested FFr2. 5bn 
($437 ru) in a property develop- 
ment project in Paris. , 

The move reflects a. general 
trend in large-scale Japanese 
prime real estate investment in 
major Western capitals. In Paris, 


Kowa has already acquired the 
former headquarter building of 
Char bo images de France, the 
French coal board. It has also 
acquired 35,000 square metres of 
office space at Courbevoie, near 
the new Paris business district of 
La Defence. 

The latest investment by Kowa 
Real Estate involves 72,600 
square metres -of office and com- 
mercial space in the Atiantiqtie- 
Montpamasse complex, near the 


Montparnasse railway station on 
the left bank of Paris, scheduled 
for completion by 199L 
The property development win 
tie in with the railway station to 
be constructed for the new high 
speed train service linking Paris 
with Nantes and Bordeaux. Wprk 
on the new high speed train link 
known as TGv-At&ntaque is now 
starting The high speed train, or 
Train a Grande Vitesse (TGV), 
service is due to begin in 1990. 


Sulzer close to acquisition 


BY OUR FINANCIAL STAFF 

SULZER. the Swiss -engineering 
group which is locked -nt delicate 
negotiations with an unwelcome 
shareholder, expect*- • to. 
announce within days- the acqui- 
sition of a Japanese company. • 

The purchase would take 
Sulzer into trading areas outside 
its traditional machinery con- 
struction business. It would not 
be related to Suiter's attempts to 
solve problems arising from big 
shareholding recently built up 
in the company, Mr Pierre Bor- 
land , the president, yester- 
day." 

He declined to give other 


details until the company had on finding an acceptable buyer 
notified its employees. This was for the share stake after a string 
expected to take place later this of measures by Sulzer, mostly 
Sulzer also plans to involving alterations to the corn- 


week. 

acquire a medical technology 
company, probably in ’Europe, 
this year, or early next,. Mr Bar- 
geaud said. *We have several' 
irons In the fire." he stressed. 


pany share register, aimed, at 
making life uncomfortable for 
the new shareholders. 

Sulzer directors said at the end 
of last week that they would like 


A syndicate led by Mr Tito Tet- the shareholding to be sold to 
. tamanti, a Lugano-based lawyer" "an investor group supportive of 
has made stock market pur- our corporate strategy- 
chases of between 30 and 40 per Sulzer Has forecast at least 
cent of Sulzer. Talks an taking^JhaiiUalned. profit* for this year, 
•place between Mr Tettamanti For 1966 group turnover totalled 
‘and the Sulzer management. . SFr4J55bn and net earning were 
. The discussions have centred SFi€7m ($48.3). 


Limited support for Bugge rights 


BY KAREN FOSSU M OSLO 

BUGGE EIEND0M, Norway's 
financially troubled property 
company, which ran into liquid- 
ity problems after investors 
refused to subscribe to a 
NKrI55m ($34J2m) rights issue, 
says that almost NKr29rn has so 
far flowed into the company's 
accounts. 

According to Mr Carl J. Ham- 
bro, Bugge s legal adviser, sev- 
eral institutional investors, 
including Christiania Bank, Den 
norske Creditbank (DnC) and 
Midland Bank of the UK, have 


taken the issue. 

Problems, however, remain 
with three of the company’s 
major shareholders. Including Mr 
Niels Bugge, the former manag- 
ing director, as well as with 
smaller investors, who have not 
yetpaid their subscription fees. ; 

This problem has been com- 
pounded -by Mr Sveln Aasmund- 
stad, director of the Security and 
Banking Exchange Commission 
(Kredittilsynet), who last week 
advised Bugge's small sharehold- 
ers to withhold subscription pay- 


ments until more is known about 
the company’s solvency position. 

. The remark could serve to 
undermine Mr Hambro’s efforts 
to restore solvency to Bugge. Mr 
Hambro yesterday issued a terse 
letter to the commission's offi- 
cials calling their advice to 
“ _ :’s Investors irresponsible in 
the light of good practice. 

Mr Hambro says that he now 
"sees light at the end of the tun- 
nel.” Bugge has U K property 
holdings estimated at 
NKr825.7m_ 


Deutsche Bank buys into estate agent 


DEUTSCHE BANK, the biggest 
of West Germany's commercial 
banks, has taken a shareholding 
in Immobilien-Holding Zimmer, 
a Cologne-based estate agent. 

The bank, which along with 
other German financial groups 
has been widening its trading 
services in recent years, declined 
to give any details of the size or 
cost of the shareholding. 


Zimmer, which is fi 
trolled aim headed by Mr 
of & 


erty and institutional services. 

Deutsche Bank said that Zim- 
in er would stick to the real 
estate business while the bank 
would continue to concentrate 
on its basic banking operations. 
However, the bank stressed that 
from now on each company 
would be able to offer clients 
ranging from pri- complementary services as a 
3 industrial prop- result of regional co-operation. 


Zimmer, is one of the big five 
German estate agents. It has 
about 50 employees and last year 
achieved a com m ission income 
of between DM200m and 
DMSOOm ($46m). 

The company has a broadly 
based business ranging from pri- 
vate housing to industrial prop- 


Hydro wins 
first round in 
sell-off battle 

By OvOato Correspondent 

NORSK HYDRO, Norway’s 
largest publicly quoted com- 
pany which has interests in 
ofi and gas, fertilisers, petro- 
chemicals and metals, has 
won the first round in the 
challenge by Sweden's Naar- 
ingsfnhetsombudsmanoen 
(competition ombudsman) to 
Mock a SKr250m ($36.76m) 
deal in which Norsk Hydro 
has sold its two Swedish 
industrial gas subsidiaries 
and a stake in a Finnish gas 
subsidiary to Agaof Sweden. 

Norsk Hydro said that 
Swedish monopolies officials 
tried to block the sale with a 
stopgap measure while they 
rallied further s u pport. The 
ombudsman argued that the 
deal would create a gas 
monopoly situation in Sweden 
for Aga. 

The Swedish authorities 
have now taken the decision 
to a higher court, the Markets 
Court, in an attempt to per- 
manently block the sale. 

It is estimated the deal 
would boost Aga’s share of 
the Swedish gas market from 
73 per cent to 80 per cent Air 
Lkpride, the French gas com- 
pany.has 20 per emit of that 
market. 

Under the Norsk Hydro- Aga 
deal, Aga. will acquire Norsk 
Hydro’s two wholly owned 
Swedish companies, DFK Gas 
and Skandinaviak Gasteknik, 
as well as its 54 per cent 
stake in Finska Kolsyreindus- 
tri, a Finnish gas concern. 


Danfoss wary 
on long-term 
prospects 

By I Story Barnes In Copenhagen 

DANFOSS, THE unlisted Dan- 
ish components manufac- 
turer, said pre-tax profits for 
the year ended in September 
will be about DKr228m 
($85m), which is unchanged 
from last year and slightly 
better than forecast after the 
first six months. 

But the group said in a pre- 
liminary statement that cur- 
rent profits are not sufficient 
to maintain the long-term 
growth of the group. 

Sales increased last year by 
DKr336m, or 6 per cent,to 
DKr5.74tm, reflecting mainly 
-volume growth. 

The Jutland-based group 
specialises In temperature 
control equipment, transmis- 
sion equipment, od fire hunt- 
ers, and hydraulic motor* and 
controls. It has a workforce 
of about 13,100. 

Danfoss said that sales 
growth, in the current year 
would be slightly lower than 
last, but last year’s high level 
of investment, of about 
DKr400m, would be main- 
tained. It added that this 
forecast assumed that there 
would not be a worldwide 
depression. 


Grand Metropolitan PLC 


through its wholly owned subsidiary 


GrandMet USA, Inc. 


has sold 


Children’s World, Inc. 


to 


ARA Services, Inc. 


The undersigned acted as financial advisor to 
GrandMet USA, lac. in this transaction. 


Lazaro Freres & Co. 


November 4, 1987 



Ferruzzi 

Agricola Finariziaria 

has acquired 


The European Industrial Products Division 

of — - 

CPC International Inc. 


The undersigned initiated the transaction, assisted in the negotiations 
and acted as financial advisor to Ferruzzi Agricola Finariziaria. 


Kidder, Peabody & Co. 

Incorporated 



Republic of Italy 

V ¥150,000,000,000 Floating Rata Hates An 1992 

Interns! Rate 5.15%. Interest Period November T8, 1987 to May 18, 
1 988. Interest Payable ¥256,093 per ¥1 0,000,000 denomination and 
¥2,560,929 per ¥100,000,000 denomination. 


November ? 7, 7 987, London 
By Citibank HA. (CSSIDeptJ Agent Bank 


CmBAN<0 



NOTICE DF PREPAYMENT 

The Dai-lchi Kangyo Bank, Limited 

(incorporated with limited Natality in Japan) 

US$40,000,000.00 
Callable Negotiable Floating Rate 
Dollar Certificates of Deposit 

Nos. 000001 to 000040, Issued on 4th February, 1985 Maturity. 
Date 4th January, 1989 Optionally Callable in January/ 1988. 
Notice Is hereby given that in accordance with Clause 3 of the 
Certificates of Deposit (die "Certificates"), the Dai-lchi Kangyo 
Bank, Limited (the "Bank") will prepay all outstanding Certificates 
on 4th January, 1988/ (the "Prepayment Date")/ at their principal 
amount 

Payment of the’printipai amount together with accrued interest to 
the Prepayment Date, wilt be made on the Prepayment Date against 
presentation and surrender of the Certificates at the London branch 
of die Bank, interest will cease to accrue.on the Certificates on the 
Prepayment Date. 

The Dai-lchi Kangyo Bank, Limited 
London Branch, 

122 LeadenhaU Street, London, EC3V4PA 


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This jniKiuiicctnctu appears its a matter of tvcrird only 


POLYSAR 


September 1987 


Polysar Limited and/or Polysar Europa N.V. 

US$ 150,000,000 Medium Term Loan 


Orion Royal Bank Limited 

as I<ead Manager 

Banque Bruxelles LambertS. A. Continental Bank SA7N.V. 

Credit Suisse Canada Gen erale Bank 

Nederlandsche Middenstandsbank N.V . The Royal Bank of Canada (Belgium) S A. 

Swiss Bank Corporation (Canada) 

as Co-Lead Managers 

Christiania Bank og Kreditkasse 

as Manager 


Commerzbank Aktienges ell sc ha ft 

Kredietbank International Group 
RBC Finance B.V. 


Banque Indosuez 
The Mitsui Bank, Limited 


Banque Internationale a Luxembourg Societe Anonyme 

as Co-Managers 
Arranged by 

ORION ROYAL BANK LIMITED 

A member of The Royal Bank ol Canada Group 


Bank of Ireland 
Westdeutsche Landesbank Girozentrale 





f 




21 & 


Financial Times Tuesday November 17 1987 

INTERNATIONAL CAPITAL MARKETS & COMPANIES 

Stefan Wagstyl on a Japanese steel group’s change in strategy 

Hanwa goes back to basics 


Dealers wait for concrete 
news on the US deficit 


BY CLARE PEARSON 

THE WEEK got off to a slow 
start in the Eurobond market 
yesterday as dealers awaited 
fresh news on the US budget def- 
icit. 

President Reagan's weekend 
comment that he was confident 
that an agreement between con- 
gressional and White House 
negotiators - aimed at cutting the 
deficit by $80bn over the next 
two years - would be reached 
this week, had little impact on 
the bond market. 

Dealers said they would hold 
back from buying dollar bonds 

until concrete news emerged. An 
agreement of some sort is likely 
this week; if one is not reached 
by Friday, S23hn worth or cuts 
come into effect automatically 
under the Gramm-Rudman bud- 
get reform legislation. But deal- 
ers said they would be waiting to 
see exactly what the new pack- 
age would involve. 

The President's statement that 
he thought raising taxes would 
be the wrong step m tackling the 
budget deficit, which depressed 
the dollar, came too late yester- 
day afternoon to affect European 
markets. 

Eurodollar bond prices 
remained unchanged but were 
underpinned by the firmness of 
the dollar during European trad- 
ing time. Last week, a comment 
by President Reagan that he did 
not want to see a lower dollar 


had triggered a bout of short 
covering in Eurodollar bonds. 

Eurosterling bond prices 
opened sharply lower, by up to 
% percentage points in the 10- 

S area, in the face of the 
?r dollar and further gains 
in the UK equity market. The 
rally in shares over the last week 
has dimmed hopes of a near- 
term cut in UK bank base lend- 
ing races from the present 9 per 
cent. 

Both Eurosterling and gilt 
prices Improved later in the day 
as dealers took the view that the 


INTERNATIONAL 

BONDS 


dollar was vulnerable to any bad 
news on the budget deficit, and 
on a resurgence of hopes of 
lower UK interest rates in due 
course. Eurosterling bond prices 
ended unchanged, while gilts 
were about M point lower. 

Nippon European Bank 
appewed to be taking the view 
that hopes of lower European 
interest rates, which might fol- 
low from any satisfactory resolu- 
tion of the US budget deficit, 
would buoy up die Ecu market 
when it launched a new issue in 
that sector for its parent, 
Long-Term Credit Bank of 
Japan. This was the only new 
Eurobond Issue yesterday. 


The EculOOm seven-year 8% 
per cent Issue, priced at 20116, 
was bid at less 1%, the level of 
its total fees. 

D-Mark bond prices drifted 
lower in very thin activity, 
depressed by the dollar's 
strength- However, dealers said 
there was too little faith that this 
phenomenon would be more 
than temporary to trigger any 
significant selling of D-Mark 
bonds. D-Mark Eurobond prices 
were marked down by about 
point while domestic bonds 
moved about Vi point easier. 

The toms of a new Federal 
Railway bond emerged broadly 
in line with expectations. The 
DUlJSbn 10-year issue carries a 
6% per cent coupon and 100% 
Issue price. 

The bond excited little inter- 
est. It was quoted outride the 
consortium at less 1% bid, to give 
a yield in line with 10-year bank 
bonds. 

The most recent DM2bn 6% 
per cent 10-year Federal 
Republic bond issue started 
trading officially yesterday. Its 
price was fixed at 99%, to give a 
yield of 6.41 per cent 

In Switzerland, prices ended 
the day firmer. Some dealers said 
demand was strong enough for a 
new issue in the foreign bond 
market, but none emerged. 
Credit Suisse and Swiss Bank 
Corporation launched issues, 
totalling SFrSOOm, in the domes- 
tic bond market. 


Spate of accountancy mergers 


BY RICHARD WATERS 

AN UNPRECENDENTED spate 
of mergers in the Netherlands 
threatens to leave second-tier 
international accountancy 
groups with serious weaknesses. 

Large firms are predicting sim- 
ilar mergers around Europe as 
individual national firms begin 
to recognise a need for stronger 
International representation to 
service their clients. 

Touche Ross, one of the top 
eight international groups which 
form the first tier, announced 
yesterday that it is to acquire De 
Tombe/Melse, the Dutch mem- 
ber of Grant Thornton, a smaller 
international group. 

The merger leaves Touche's 
Dutch firm with fees of more 


than 
close 

enhof (part 
& Limperg (Arthur Young), the 
two giants of the Dutch accoun- 
tancy profession. 

This follows the acquisition 
last month of Dechesne Van Den 
Boom, Spicer & Oppenh elm’s 
affiliate, by Ernst & Whinney, 
another big eight firm. 

Price Waterhouse is in 
advanced merger discussions 
with Dffker en Doombos, one of 
the founder members of BDO 
and the third largest accoun- 
tancy firm in the Netherlands. 

A fourth firm, IQynveld Kraay- 
enhof, merged with Peat Mar- 
wick earlier this year as part of 


the international combination of 
KMG (the largest second-tier 
accountancy group) and Peat 

International accountancy 
firms are in tact affiliations of 
national firms, some of which 
have few obligations holding 
them together. Both Dijker ana 
De Tom be will have to pay com- 
pensation for changing camp, 
but suffer few other penalties. 

Other national member firms 
of the medium-sized groups 
around Europe are reported to be 
besie ged with offers from larger 
firms. 

“There’s a quiet revolution 
going on out there," says a 
spokesman for Touche Ross. 


FT INTERNATIONAL BOND SERVICE 


Lfated are the West totamUnd bonds for whicb then fs m adeqnte secondary sorW. 



WO — WJ 

9*% 4<J%-0% lo J9 
97% . 0 40%. .9.54 _ 


^94-0% 0 *10 

MO 0-0% 9J* 
V7J. -0J.-tu, vn 
97% 8-0% 9.48 

90 -0%40% 9J9 
10Z% -2% -2% 10X0 
Wt-Ok-CJ, 9XM 
93% 0+0% 9X2 

96% -0% -0J, 8.93 
99%-0%-0% 901 
94% 0 +0% 9jOB 

94% 0 0 *95 

9Z% —0% — 0% 9.41 
97% -0% +0% 9JU 
99% -0% —0% 8 X 6 
92% -0% +0% 907 
92%-0%--0% 940 
92%-0%-0% 932 
98% -0% -0% 9.71 
08% “ 0 % — 0 % 934 
92% -0% -0% 933 
105% +c% +0% atfa 
102% -0% -0% 9.93 
99% 0-0% 838 

99%_0%_O% 832 
88 0 01034 

95% 0 Q 8.78 

90% 0 0 10.06 

92 -0% -0% 4.97 
i 0 +0% 935 



ftonww 

SJLCLF. 


Owing price on Nowtnter lb 

. . Ongt an 
•nod M «h> WMlWi 

45 94% 94% -9.-1% 535 
40 94% 93%-0%-l% 538 . 

20 97% 98%-0%-l% .532; 
30 94 90* -0% — 1% 5-73 

30 95% 95% -0% -1 338 
20 96% 97% —0% — 1% 532 

50 95% 96% -0% -0% 537 

50 100% 100% -0% -1% 532 
. Ob d% r -0% op neck -1% 


_ 5% 91 FL 
Aegon 8 % 89 FL. 


Mr Prefects 6 % 91 FI — 
Alp, Bk. Ned. 5% 91 FL— 
Atg. Bk. Ned. 7% 89 FI — 
AJg.06.Ned.889n— _ 

A — H gm Egress 0CO0< 

BP CapM 13% 92 Aj__ 


Denaat 7% 92 1 
DGRo.Co.13%904*. 
DG Ho.Csi]490AS— 

DGFtma 14% 92 AX- 


IOMS aw after if ohUHI 

- 100 98% 98% -0% +0% 635 

. 100 102 % low. - 0 % - 0 % 321 

. 100 100% 100% 0 40% fc_S0 

. 100 98% 98% -0% +0% 323 
. 150 103 1119% +0% +0% 5.94 

. 200 101% 102% -0% o 60S- 

- 40 98% 99% +2% +0% UU7 . 

- 75 198% 99% -0% +1% 13-96 ■ 

30 198% 99-0% +11432 

100 99% 99%-0%-0% 7.1 


>14% 90 

■4c 9% 971 
Deaucfte BkJ4% 92A 

0rerinerflaJ3%9lA! 

Efecucfex B 89 FI 

E. LB 6 % 93 LF 

7% 97 ECU— 
U% 88 Fi_ 


50 102 % 

■tlltt 102 


~°0 4i% 1238 


0+1% 13X0. 
0 + 1 % 1321 


Tfejo Finance 7% 94. 

Toyota 

Victorian Rep 11% 

World Book 792. 

World te* 997, 

Vrodo Ti uB Flo 8 % 93- ;- 

Avenge price i 

DEUTSCHE KAH 
STUU0HTS 
Arab Banking 5% 92. 

Arte Fln-SVS 5% 92- 


Bfedtet Greece 6% « 

Bank of Tokyo 5% 93- 
Central 8tCTorhw7 J 
Degoaa lnL3%97— . 
E.LB5J ~ 

E.LB 6 
EJJL 6% 

E.LB. ‘ ' 

E.I JO. , 

EaraCaaiA Steel 5% 97- 

EoroHma W, 96_ 


%% 

87% -0% -0% 1029 
98% -0% 0 170 

90% 0 -0% ULOO 

93% . 040% 938 
95% —0% -0% 090 
91% -0% 0 938 

95% -0% -0% 935 
10Z%-0%-0% 9.94 
101 %—— ItW 
101 -0% 44% 9J.9 
MS% 0 40% 929 
9B-0%-0% 933 
94% O+OJ, 695 
104 —0% +0% 8.93 
94% -0% -0% 838 
93% -0% +0% &96 
95 0 0 938 

98%-0%-0% 932 
90 -0% -0% 1004 
93% -0% 0 927 

107%-0%-0% 932 
93% 0-0% &87 

95%-0%-l% 9.70 
94% -0% 0 939 

■ «mk-0% 


623 

637 

731 

531 

631 


Earaflna7%92FL. 
EmflaplO%89FL. 
Finland 6 91 FL 


FMMtr.CKdJ3%40AS 

63LAX.992Z 

CJMJLC.9% 92CS 

QJIJlC A«»Jlna,4 90 AS 

HaRbK BS 10% 97 C 

Monde Htr.W/W 5% 90 FI 

Haou-r OgH. M.V. 7 91 FL 

hap CMm Ml 10 03 E— _ 

laMn iBdtntl 10 93 C 

LrasePta-NcLbSLfl—— 

Lee* 83 10% 91 &. 


75 

50 tBS%U3% 

100 tlC®! 100% 0 4l% 1436 

100*199% 99% 0 4l% 13.93 

60 101% 102% -0% -0% 633 
1000 fl02% 103% 0 0 739 

MS 90 9Q%-0%— 0% 8.9b 
150 102% 109% -0% 0 036 

SO 103% 103% 40% 40% 635 
SO 105% 105% -0% 0 615 

100 98% 98% 639 

73 196% 96% -2% -0% 1501 


? 7 % 


0-2% 933 
-11033 


MorLBUfeamfc 6 91 FI— 
Mtge.Bk.Da.6%91Fl— _ 

NauAwtraHa 14 92 At. 

KadomMe 8S 10% 93 £ 

NewZoafand 7% 93 ECU 

itS — ... 


PrtdertMF6L9%07l 
SJUL 7% 95 ECU. 


> Forte 11% < 
7%ssen7% 90 Fl_ 

6 % 90 Fl_ 


Wortd Bank 13%92i 
FLOATS* RATE 


75 94% 95% -0% 

90 198 98% -0% 4l% 14.74 

100 99% 100 -0% -2% 10.42 

100 109 111 — 037 

50 101% 101% 630 

100 96% 97% 0 -2% 1038 

6 O’ 99% 100% 40% -2 1033 

50 97 98 634 

50 101% 1(0% 40% -1% 9.96 
150 98% 98% 0-0% 639 

100 100 100% 635 

50 198% 98% 40% 42% 037 
75 100% 100% 43% -0% 9.94 
200 95% 95% 0-0% 889 

75 197% 96% -1% +0% 1436 
ISO 90% 91 -0% -2% 10.49 

90 95% 95% -0% — 1% 8j64 

50 1102 102% 40% -0% 9.40 
50 1IU% 102% -0% 0 643 

50 UU% 101% 0 40% 636 

MO 196% 97% -1% 5 1424 




Eke Dr France 5% 97- 

Hoeseb IflCI FtaJ7 95_ 

LAJLB.697 


>5%97_ 
hda^6%97 

Karel De» BK6%9S_ 

Malaysia 6 -% 94 — 
0esters.KMLBlU%9; 
Pmagnl 5%92_ 


150 96% 97% S, -0% 

100 199 99% 0 0 

ISO 96% 97% —0% — 0% 

100 1101% 10 U. +0% 0 

200 1100% 101 0 0 

200 95% 96-0% +0% 675 

150 92% 93% -0% -0% 647 

300 97% 98% -0% 40% 631 

300 97% 98% -0% -0% 641 

400 97% <W%40%4fl% 643 
300 102% 103% 0-0% 640 

175 9Si 96%-0%-O% 649 
100 99 100 -0% 40% 632 

300 93 93%-0%-0% 670 

100 100% 101% 0 40% 685 

200 95% 96% +0% 0 661 

100 1100% 101 +0% 40% 569 
100 93% 93% -0% +0% 671 
198 98% 0+0% 675 

99% 100% *0% +0% 6 U 

97% 97% 0 40% 672 

1101 101% 0 40% 5-33 


Portugal 6% 9S_ 


Royal Insurance 5% 92- 
Staton 6% 97- 


SocCcia Nodear 7% 9S— — 
Steweag5%96- 


300 
100 
ISO 
200 

150 _ . _ . 

130 99% 99% -0% 

300 199% 100% 40% 0 649 

200 195% 96 0 40% 687 

ISO 101% 101% -1 -0% 698 
100 93% 93% 0 4l 652 


96% 99% -0% -0% 5.93 
— “i 5 670 


Tokyo Elec. Power 6 97 300 193% 93% -0%-0% 695 

World BK. 6 % 97 600 99% 99%40%-O% 638 

Awragc price change- On day 0 on week 0 


STUMHfTS 
MriCM OWiBk. 5%1 
AMRCotpo. 5% 01_ 
Axflmg5 02- 


BawrW/W2%02— 
88 L W/W 2% 97 

EJecOt.Fraace 5 07. 

ELLB.4% 97. 

E-LB 4% 9 7 

Ensi Gatfftt 5 99_— 
beUndSOZ 


Newfaumtimd 5% I 

Polly Peck 6 92. 


Preujf Manitoba 4% 02—— _ 
Pro*, of Oucbec S 03— 

Oaotm Alrwsyi 4% 97. 

SHV Hokfcw 4% r ~ 

Hitler 4%' 

INI 5 95 - 

VfooMdt 8/S 4% 

WtrM 8*4(502 


100 197 

200 186% 
150 194% 
250 198% 
100 183% 
100 t98% 
200 197 

200 197 

100 198 

150 191% 
150 199% 
73 197% 
200 199 

200 197 

110 195% 

a® 

100 199% 
120 197% 
200 195 


Offer do «wk YVrid 

97% 40% 40% 603 
87% -2% -1 674 
95 0-0% 553 

99% *0% 44% 258 
83% 40% 0 4.94 

99% -0% 40% 5l08 
98-0% -4% 5.08 
97% -0% Q 520 
98% 40% 

91% 0 



Areray price d a n y — Qp <%-Q% 


521 
5J0 

100-0% -1% 5L15 
98 0 +1 661 

99% 0-0% 426 

98-0% -1% 524 
94% +0% 4l% 556 
100%-0%-0% 677 
100% +0% 4l% 4.73 
99% +0% 40% SOB 
98-0% -1 5JB 
95% 0-0% 5 j49 

a week 40% 


C TTw Fkaand al Tinea L K % I987 . Nep tdnMon In whole or In wi In 

SfrfeS. SSS*" ~ «>» W * 


1002211/12 724 

9921 2MJ1 1027 

1002919ns 7X9 

9921 WO. Wit 

99A3 22M2 7X9 

9625 3001 7X2 

98X9 13/01 7% 

100X2 22/02 4X1 

99J7 8/02 8.97 

9643 21/02 697 

994230021037 

99281801 10% 

9822 4 KB 7% 
99X0 a«H 722 

10024 -7 An 8X9 

99X5 28I0Z 729 

99251901 am 
■eok-028 


92% 94% 41% 29JS4 
74 75 -0% 5043 

98 99% -0% 3324 

1 ^ 1 ^ 

136% 137% 47-035 

94% 96% 4l% 1013 
274 176 0 1066 

134 135% 43% 326 
383% 185% 44% -021 
124% 125% 40% -053 
72% 74% +1% 3646 
86 % 88 % 40% 3721 
127% 129 46% 1.95 

101% 103% 40% 5629 
282 283 49% 141 
m% 181% 4«% am 
150% 151% 45V 321 
85% 87% 42 2624 

157% 159% +3% LOS 
76% 78% 0 -2B 7b 

* No KottaaBoa ndldf i p nd aw ffft price 

t 09 one ratal lienor implkm a fetce 

SbaUS Soafc TkeyfcM Is Ike field tt rtdmpUon Of fte nHwlce; Ike 
wSW k lo mOlonf of uain oer onto except for Ten bomb 

atoe It b la UBoh. Change on e nWa ngi owr price a week 

carl hr. 

Ftattag Rate Noik DMHO^abd In Mart note MtanHw WkataA 

Coapn Jtmn b rMhob. OdtewOMe aetf mpon becomes e«ee- 

Uk. SwewMtegbi aboae tfe-aoott offend nte llfl ei n e a u fli , 
Sabow non me) tor US Attars. Ccp^Tbe anent eoupoo. 
Coyrt We Bon ds QeMfUd h John eitef dtHcnihe hatatnd. 
Cbg. danOMoo on dN>. Car (One-Hm Me of eona infe n loin 

dm. Cm. pricewNomM acont of beat per dm exjnssed Incur- 

icaqF of More at oa m S o n ntc fixed at kne. PieefePeRMage 

>4*nef tbeennetcficctha prim of acqNriag Sans (da the bond 
rrtoMst new price of the Hwtf. 


MtaoMa Camera 2 % 940H— . 
MitaC trust 2% QL 


OH Dec lad 3% 99, 
Omrantuki 2% ~ 
Redand7% 02 E. 

Yokolwni BaM of 2% 

WJL6nce6%02lri. 


Nasdaq to 
tighten 
rules for 
dealers 


By arnplmn FMtar, EuronmiMta 
Correspondaot 

THE NATIONAL Associa- 
tion of Securities Dealers of 
the US has aminum ifil pi«»» 
to toughen the rules for 
dealers on the Nasdaq mur- 
kest following last month’s 
collapse in stock prices. 

The new proposals, now 
bring refined, call for man- 
datory participation 1 b the 
market’s Small Order Exe- 
cutions Service by all mar- 
ket makers in Nasdaq secu- 
rities. Currently about 210 
of Nasdaq’s .540 market 
makers participate in the 
system. 

They will aim to make 
sure the SOBS system, 
which permits the auto- 
matic execution of cus- 
tomer orders for up to 1,000 
shares In many Nasdaq 
securities, continues to 
work even when the mar- 
kets are volatile and mov- 
fast. They also call for 
Nasdaq market makers 
to participate in a clearing 

^To^disoourage dealers 
from withdrawing from 
trading I ssu e s, the associa- 
tion proposes to place a 30- 
day ban on a market maker 
if it stops markets 

in Issues Bar reasons other 
than those permitted under 
withdraw 


5f 


iwal provi- 
sion. 

The Nasdaq market was 
criticised during the market 
ml In nor late last month on 
two malit fronts: that inves- 
tors could not get through 
by telephone to dealers, and 
that many dealers withdrew 


The proposals, which now 
go for public comment, are 
likely to make the obliga- 
tions of Nasdaq marfcet- 
maMng more significant, 
and eoald result in some 
dealers reducing the num- 
ber of securities in which 
they are willing to make 
markets. 

“The record Naadaq trad- 
ing volumes of October 
have —44 clear *%»» Hrita 
tioas of telephone access In 
the operation of our market 
and the need to expand 
compute r-to-eompntex exe- 
cution of trades," said Mr 
Joseph Hardiman, NASD 


He said that the charter 
of a NASD task force, 
formed in April 1086, had 
been- widened to include a 
review of structural and 
quality of market issues, 
Including the performance 
of systems end issues of 
dealers' capital, competi- 
tion and obligations. It is 
being asked 'to repent beck 
within 120 days. 


Toronto bank 
polls ont of 
Eurobonds 

By Our Bao ma ifca ta Staff 

TOBONTO-DOMINION Bank 
yesterday announced the 
Immediate closure of its 
Eurobond department, 
whose main activity had 
been market making in 
Earo-Canadian dollar 


The withdrawal involves 
the loss of 16 Jobs in syndi- 
cation, sales and dealing at 
Toronto Dominion Interna- 
tional, the investment bank- 
ing aim of Toronto Domin- 
ion. But the bank arid It 
would try to redeploy the 
affected staff. 

Mr Douglas Farrell, a 
senior vice-president, said 
Toronto Dominion sew little 
prospect of making money 
in the Eurobond market and 
did not feel its re c ce— in 
other areas was dependent 
on a Eurobond capability. 

Earlier this month, Orion 
Royal Bank, a leading mar- 
ket maker In the Canadian 
and Australian dollar sec- 
tors, withdrew from the 
market creating 150 redun- 


The Canadian dollar mar-' 
ket has become Increasingly 
competitive over the last 
year, with new players 
entering in both the pri- 
mary and secondary market 


Turkish bank 
raises $200m 

By Our Emuumrimta Stall 

T.C. 23RAAT Tun-' 

k ®y’o government-owned 
agricultural bank, is raising 
$2Q0m In pre-export financ- 
ing through a four-bank 
led by Arab R«i>Hn| 


The 25-mouth facility, to 
be guaranteed by the Turk- 
ish republic, curries inter- 
est at 46 percentage prints 
over London interbank 
offered rates, and carries a 
co mm it m ent fee of 4b per 
cent. It Is due to go into 
syndication this week. 

The group also comprises 
Bankers Trust Interna- 
tional, Bank of Tokyo Inter- 
national and Gulf Interna- 
tional 


UR SHIGERU ETTA, one of the 
- of the Tokyo financial 
. has virtually turned his 
back on zaitech - the business of 
investing surplus corporate 
infuv ' " 


funds i 


landal instruments. 


The president of Hanoi, a 

medium-sized steel stockholding 
company, Ur Bta matte bigger 
profits in recent yean ont of red- 
tech than almost any other Japa- 
nese industrialist - by taking biffc 
ger risks than the rest 
However, for the pari six 
months - Well before ate stock 
market crash - Hanwa has been 
putting its fluids back into steel, ' 
as well as chemicals, machinery 
and non-ferrous metals. 

The company Is going back to' 
basics • inverting, in stocks of 
raw materials in anticipation of 

a continuing recovery in the Jap- 
anese economy whim is expec- 
ted to grow by 35 per cent this 
year - crash or no crash. 

The glass- walled dealing room 
next to Mr Kita's office in Han- 
wa’s Tokyo headquarters will 
stay open; Ur Kite says he does 
not want to miss any bargains. 
Yet his investments will be only 
a fraction of what they were 
when Hanwa put up to Y70bn 
(5515m) a day into the foreign 
currency market 
Mr Kita has a Legendary repu- 
tation in the Tokyo markets, 
won by forecasting correctly the 
rise In the dollar in the early 
1980b and then speculating on its 
tall after the Plaza A g r eem ent of 
1985. 

Mr Kita hired able dealers, but 
the key decisions were taken by 
him personally. Sitting in front 
of a mist of himself in ills office, 
Mr Kita says the secret of sucoem 
was “not to go for the jackpot* 
There is a Japanese proverb, 
he says, about throwing away 
the head and tail of a fish and 
eating only the middle. In 


finance, thri means you should 
not go too far in trying to follow 
prices to their peaks but grt out 
in time, he says. 

Mr Kita denies that he was 
ffomhiing his company in mak- 
ing risky financial investments. 


HANWA say* that xml tech 
accounted for 73 per cent of 
pre-tax profits in the half 
year to fleptember. Thanks 
to zaitech, operating profits 
of Y3.24bn were trans- 
formed into pre-tax rerel ta 
of Y12J5ba. The result was 
oajy marginally higher 
last year’s Y 12. 3 bn, but 
Hanwa has been reducing 
its investments in fi nancial 
markets since the beginning 
of tike year. Sales were 
down 2 per ce nt to YSSflhn 
but the company expect* a 
sharp improvement in oper- 
ating income in the second 
half, reflecting the recovery 
in demand for steel in 
Japan. For the full year to 
March, it forecasts sales of 
Y6l0bn and pretax profits 
of Y24bn. 


as a supplier to the 
industry. 

Mr Kita never lost his entre- 
preneurial flair, la the mid- 
1970s, the company started a 
business Importing frozen fish 
from North America and Nor- 



The opposite was true, he says. 
He was trying to create a stable 
flow of profits to balance the 
profits from atari. 

In practice, he went much fur- 
ther than this. In the 'year to 
March 1967, Hafiwa’s operating 
profits were only 35 per cent of 
its pre-tax total of Yl/.ebn. Most 
of the rest came from zaitech. 

This is a far cry from the 1646, 
when Mr Kita and two brothers 
started the business in Osaka, 
supplying steel to the a govern- 
ment-sponsored scheme for 
replanting Japan's war-damaged 
forests. Hanwa prospered by 


Mr SUpn Kita, president of 
Bum 

way. He had no qualms about 
switching from steel to fish. 
*No-one was importing fish into 
Japan at the time. So we were in 
the same position as everyone 
rise." Mr Kita himself flew to 
.Alaska to sign deals with the 
fishing fleets. 

Yet a keen financial sense, 
rather than spectacular commer- 
cial thinking, is really at the 
heart of Hanwa. Mr Kita says 
that from the earliest days the 
company bought land for Its 
offices and warehouses ‘because 
land prices will never go- down 
in Japan. There are so many peo- 


ple." The company's holdings are 
now worth about Y2Q0bn. 

Not surprisingly for a cash-rich 
distribution company, money 
management always figured 
prominently In Hanwa’s plans. 
Expansion overseas naturally 
taught the company about cur- 
rencies. 

So Mr Kita rejects the sugges- 
tion that he plunged into the 
unknown in getting into zaitech. 
It was, he says, the obvious way 
for a commercial trading com- 
pany to make the best use of its 
money. When margins on steel 
trading fell from 10 per cent to 1 
per cent, the group could get bet- 
ter returns in the financial mar- 
kets. 

This changed in the early 
months of this year, when Mr 
Kita says he saw the Japanese 
stock and bond markets becom- 
ing too expensive- The dollar’s 
decline was continuing but it 
was becoming less predictable. 
So Hanwa changed tack, just in 
-time to catch a surge in Japanese 
construction which pushed up 
building material prices. 

Mr Kita says that it was 
"unfair” that zaitech got a bad 
name as a result of the disas- 
trous failure of Tat eh o Chemi- 
cals Industries, which this sum- 
mer lost money in bond futures. 
"Tatehb was very dumb," says 
Mr Kita,' I think there are very 
few other companies like 
Tateho.* 

Mr Kita does not intend, to 
abandon the financial markets 
entirely. His tip Is to take advan- 
tage of the tall in the stock mar- 
kets to buy tiie shares of Japa- 
nese industrial companies. 

"Even with the appreciation of 
the yen, Japanese industry is 
. growing ana increasing in effi- 
ciency. The Japanese stock mar- 
ket will come back. In the US It's 
different" 


NYSE members to face 
capital adequacy review 


BY ALEXANDER MCOLL 

MR JOHN Phelan, chairman of 
the New York Stock Exchange, 
said yesterday that capital ade- 
quacy of member firms would 
have to be revie w ed In the light 
of the huge volumes and volatil- 
ity experienced in October's 
stock market crash. 

"In a 500-point environment. 


Average on "Black Monday," 
October 19. 

Mr Phelan said there had been 
a "sea change’ in the way eoui-- 
ties were used, with growing 


takeover arbitrage, leveraged 
buyouts and new products such 
as portfolio insurance. These 
nourished in the bull market, 
with large amounts . of trading 
among professional players. This 
had created a false impression of 
liquidity in the markets which 
was exposed when they fdL 
Over-borrowing had contrib- 
uted. “Markets were going more 
and more into debt. They were 
running without much cash 
being put up and with 
being withdrawn and su' 
by debt’ 

See Lex 


Beijer Capital acquires 
30% holding in SOFE 


BY SARA WEBB M STOCKHOLM 

BEIJER CAPITAL,' part of the 
financial, trading, and Industrial 
empire controlled by Mr Anders 
Wall, the Swedish financier, has 
acquired a 30 per cent voting 
stake In Sweden’s Options ana 
Futures Exchange (SOFE), one 
of the two rival Swedish mar- 
kets, far SKrl7m. 

The deal makes Beijer Capital 
the largest shareholder in SOFE. 
It has acquired the shares from 
the Fourth National Pension 
Fund, the white collar workers’ 
pension fund, and PM, the bro- 
kerage firm. These institutions 
have retained smaller sharehold- 


ings in the. exchange. 

Mr Michael Hassriquist, man- 
aging director of Beijer Capital, 
said that he believed that Beijer 
had managed to buy the shares 
cheaply because of recent scan- 
dals surrounding the Swedish 
options markets in which several 
banks and brokerages have made 
heavy losses, chiefly due to inad- 
equate control by senior manage- 
ment - . 

Mr Hasselqufri said that he 
expected volume to be low in the 
immediate future, and that it 
would take a few months before 
players returned to the market 


Barlow Rand 
Limited 


(lacorpor g tedBJ the Republic of South Africa) 
(fag. No. 0200095/06) 


CONSOLIDATED PROFIT AND ORDINARY DIVIDEND 
for the year ended 30 September 1987 


AD-ioond improvements 


* pre-tax profits +25% 

* attributable earnings +30% 

* earnings per share +30% 

* ordinary dividend +25% 


• - - 

Year ended 



- 30 September 



1987 

1986 

% 

... 

Rn 

Rm 

Change 

Ibrnover 

16^13.4 

14,634 J 

14 


M2&2 

1316.5 - 

17 

Profit before taxation 

1357 J) 

1£829 

25 

Profit after taxation 


669.6 

30 

Attributable profit* 

49CL5 

380.8 

mem 

Earnings per share 

275.6c 

212.3c 

30 

Dividend per ordinary share 

10<M)c 

80.0c 

25 


Thtt Twining and miner al hm efidatio n operations produced satisfagtra ry rasnlfg fa gpfe gf 
difficult trading oandiiions for coaL Tlie group’s industrial interests, particularly the wholly- 
owned operations, achieved excellent growth of 75% whilst the food companies also haH a 
good year. The International division had a difficult year; but was able to report a small increase 
in profits. 

A feature of the year was tbe strong cash flow which enabled the group to reduce net 
borrowings by R4£9 million after financing capital expenditure of R656 million. 

Tbe annual report to diaieholders will be posted ora or about 8 December 1987. Additional copies wfll be available 
from tbe Regiara^ Lloyds Bank PLC, Goring-by-Sea, Worthing, West Sussex BN12 6DA. TeL (0903) 50254 L 


v 







29 




TECHNOLOGY 


squirt 

SOR 




A crusade held 


S AM PITRODA is already India’s 
best known and most contro- 
versfal technologist.' A telecom- 
mtutfcationa expert who made 
his fortune in the US, ha. is -the inspira- 
tion behind a three-ye a r. £18m research 
and development programme that looks 
like .taking Indian, telecommunications 
into the 21st century with -equipment 
designed, engineered and manufactured 
abnoGt wholly in India. 

A charismatic, iconoclastic figure, he 

has powerful patronage In the shape of 
prime ministe r Rajiv fiapdl ii, but au the 
patronage in the world would not help 
him . if he could not deliver what he 
promised. Fortunately for Pitroda and 
for India, his Centre for the Deveiop- 


xnent of Telematics seems to.be achfev- 
ingits goals. . .. . 

Po liticians and technologists who 
treated Pitroda with caution and suspi- 
don three years ago are beginning to 
rang his prates. 

Gandh i has rewarded him by putting 
him in charge of India's major social 
technological initiative, an ambitious 
and five-pointed attempt to apply tech- 
nology to the problems of eninmating 
illiteracy among the country's SOOra 
people, providing them with clean 
water, health care anid efficient telecom- 
munications, and reducing India’s 
dependence on imported edible oils. 

In India, however, such rapid promo- 
tion does not necessarily make one pop- 
ular; his power and influence now raise 
more suspicions in some parts of the 
Government machine than his plans to 
buikl anindutixtoos telecommunications 
switch ever duL . 

Not that such disapprobation will 
worry the supremely self-confident 
Pitroda. His goal, in any case, he says is 
not to : build telecommunications 
switches but to foment, a revolution in 
the way India goes about its technology. 

Theprobkmfswen illustrated by the 
two snort articles', .which accompany 
this feature. On the one hand, Indian' 
oceanology - it could as well be nuclear 
science or space science - Is world class. 
Given the constraints < on funds and 
equipment in India, 1 its achievement in 
science te exceptional. 

On the other, despite a host of well 
intentioned initiatives like Electronics 
Ci^y and SEEPZ, It is failing to improve 
the quality offts high technology manu- 
factured goods or make much or a dent 
in world markets. 

It has identified electronics as a key to 
Industrial success - Gandhi worries 
about missing the industrial revolution 
bus the second time round and talks of 
having to ran behind this but, catch up 
to it and Jump <m it 






TQi 




V 


\ 




Tecbn ojogtart echoes of the 
t 950 * ! Cunent production lee of 
Rafdoot motorcycle*. 


So plans have been made to grow the 
electronics subsector at 32 per cent a 
year during this, the seventh five-year 
■ ‘plan since Independence. 

Those plans seems Increasingly to be 
going astray. The World Bank in a 
recent analysis noted: "The subsector is 
relatively small, domestically orientated 
and .internationally uncompetitive in 
quality and price in most production 

area*" 

It goes on to argue that India can 
improve its performance and make 
advances in some foreign martgfa? hut 
this will , depend on extension of the 
■reforms now bring carried through by 
' the Government "Encouraging contin- 
ued access to foreign technology by 
domestic firms, deregulating the domes- 
tic economy and, to particular, fostering 
. laiger-scale modiMtion when essential 
to' ensure efficiency; adjusting protec- 
tion to allow cheaper and easier a ww 
to components and to electronic grades 
materials and to allow gradually some 
Impost competition for final products.” 

1 - NDLAN electronics has, to fact, 
developed over the past few 
years isolated from the real 
world of competition by a bar- 
rier of import controls and restrictions. 
As a result, its process technologies are 
eight to 20 years out of date, and- its 
product technologies are five or six 
years behind. 

The rest of the world, for example, is 
already coming to grips with the manu- 
facture and use of 82-bit microprocessor 
chips - the Intel 80/386 which powers 
IBM's new personal computers or the 
Motorola 68000 family used in the Apple 
Macintosh. India's only rommennal 
microprocessor manufacturer, the Semi- 
conductor Complex Limited situated -In- 
Chandigarh to the troubled Punjab, is 
building 8-bit microprocessors, the SCL 
6600 family, used, for gvnwipio in the 
BBC Microcomputer. 

The quality of SGL’s output Is high - 
its list of foreign customers includes Sie- 
mens and Junghans of West Germany 
and Sigma Electronics of Hong Kong, 
but it is only now beginning to develop 
the advanced chip making techniques 
needed for more advanced semiconduc- 
tors. 

Meanwhile, expatriate Indians are the 
mainstay of electronics and other scien- 
tific development programmes in other 
countries. 

The reasons for this yawning gap 
between basic ability and lack of com- 
mercial follow-through are complex and 
include all those lotted fay the World 
Bank. But there is also the question of 
Indian attitudes to research and devel- 
opment, attitudes that Sam Pitroda is 




if- 




Santa Cruz Bectrontca Exports 
P ro cessi ng Zone on the outskirts 
of Bombay. 





Innovation 


of a wave 


THE UNITED Nations three 
months ago gave India an exclu- 
sive green fight to exploit its 
greatest natural resource, the 
ocean which laps against its 6000 
kilometres of coastline. 

In doing sq, it acknowledged 
tacitly that India has now 
achieved a maturity to marine 
science that should enable it 
competently to undertake ocean 
research programmes involving 
high expenditure, high risk and 


SiQasira, head of the newly 
formed Department of Ocean 
Development, says that in the 
past such undertakings would 
have been considered an exclu- 
sive monopoly of rich and devel- 
oped countries. 

The United Nations, however, 
in August announced that India 
was the first country in the 
world to be registered as a "pio- 
neer investor” under the law of 
the sea, with the rights to exploit 
commercially an area of 52,300 
square kilometres In the central 
Indian Ocean basin. 

Now the 30 or so Indian insti- 
tutions directly involved in 
ocean research are preparing for 
the first stages of an ambitious 
programme that should see the 
country wresting wealth in the 
form of polymetallic nodules 


The good news Is 

FERRANTI 

Selling tettinology 


from the sea bed . 

Polymetallic nodules, dull, 
dark rocks the size and shape of 
cricket balls, contain metals 
including manganese, nickel, 
copper, cobalt, molybdenum, 
vanadium, zinc, lead and cad- 
mium. 

Experts believe that the eco- 
nomic potential of the metals 
contained in the nodules is so 
great that at the present rate of 
consumption, there will be ade- 
quate supplies of these impor- 
tant metals from the sea for 
thousands of years. 

But reclaiming this undersea 
wealth will not be cheap. The 
Indian programme will involve 
survey and exploration, mining, 
extraction of the metals and 
transportation and marketing. 

The cost for the retrieval and 
processing of lm tonnes of nod- 
ules a year could be as high as 
&40Qra. 

Qasixn thinks that India's pio- 
neer investor status is a major 
achievement for a country which 
has to watch its research budget 
so closely. There is a long way to 
go before it can reap the benefits 
of its initiative; planning, sur- 
veying and attention to the envi- 
ronment will all take time: Tt 
will be eight to 20 years before 
we can begin mining in earnest," 
says Qasun. 



trying, by exa m ple, to change. He is 
especially concerned with the poor 
self-esteem felt by many Indian technol- 


And he is by no means the first to 
identify or tackle the problem. The late 
HomI Bhabha, architect of India's 
nuclear programme, had a profound 
insight into the problems of the Indian 
sdenctific establishment 
Indian science is hierarchical, rigid in 
structure and buDt round the concept of 
the talented individual - an exaggerated 
form of the UK research idea of build- 
ing programmes of timeliness and prom- 
ise around individuals with energy and 
insight. 

A VENERATION for pure science 
at the expense of commercial 
and practical interests has 
resulted to India Bhabha tried 
to change all that He emphasised the 
value of applying theoretical knowl- 
edge. He encouraged his researchers to 
work to teams and he showed them 
there was no shame in being w rong: "If 
you are going to succeed, you must take 
risks’ was his credo and it has been 
burned into the souls of a generation of 
Indian scientists. 


But changing attitudes in India takes 
time, which is why Sam Pitroda's Cen- 
tre for Telematics (CDoT) is as impor- 
tant for the egalitarian example it is 
setting as for the switches it is engineer- 
ing. 


Why vital spark is missing 


T EAM WORK is favoured over 
lone enterprise, goals are set 
and expected to be achieved, 
assumptions are questioned 
endlessly, authority has to be won 


endlessly, authority has to be won 
through ability rather than achieved 
through seniority. 

For many of the staff, it has proved a 
profoundly unsettling experience. 
Pitroda had to bring in a psychologist at 
one stage to help smooth ruffled feath- 
ers. 

Now Irreverent posters line the walls 
of CDoT headquarters, reflecting the 
immense pride and satisfaction its 
young engineers feel at having achieved 
what the outside world said was impos- 
sible. Sam Pitroda has succeeded to 
building self-esteem as well as switches. 
Many fed it would be a pity if political 
jealousies damaged his crusade to reju- 
venate Indian technology. 


"ELECTRONICS CITY", near 
Bangalore in south India, and 
the Santa Cruz Electronics 
Export Processing Zone 
(SEEPZ) on the outskirts of 
Bombay, epitomise India's 
attempt - and its failure so far - 
to become a world force in elec- 
tronics. 

Both were founded on indus- 
trial principles that had been 
tried and tested in other coun- 
tries. Neither has yet lived up to 
the hopes vested in them by 
politicians and industrialists. 

Electronics City is based in 
Karnataka state, the acknowl- 
edged leader of the Indian elec- 
tronics business. Karnataka is 
home to many of the largest 
Indian electronics-based compa- 
nies including Bharat Electron- 
ics, Indian Telephone Industries 
and Tata. 

The idea was to create an 
Indian equivalent of California's 
Silicon Valley, a self-contained 
area managed by the Karnataka 
State Electronics Development 


Corporation (Keonlcs) with 
financial incentives for compa- 
nies setting up in business there 
(these include a subsidy for the 
purchase of generators; Banga- 
lore, the fastest growing city to 
India, is chronically short of 
both electricity and water). 

Growth, however, has been 
slow enough to warrant critical 
mentions in official repeats. The 
plan fell foul of Government 
regulations, now relaxed, which 
encouraged the dispersion of 
high technology industry to 
remote areas. And younger 
Industrialists complain bitterly 
about the red tape: "As you 
grow, it squeezes you more and 
more until you are big enough 
to make the regulations your- 
self," one said, encapsulating to 
a sentence the hierarchical 
nature of Indian Industry. 

skkp z was meant exclusively 
of prod- 


ucts, allowing foreign compa- 
nies to establish wholly-owned 
subsidiaries and repatriate prof- 


its. Foreign companies operat- 
ing in India itself are not 
allowed & majority holding in 
their subsidiaries. 

Established in 1974, there are 
71 industrial units employing 
8000 workers in the zone contri- 
buting nearly two thirds of 
India's total electronics exports. 

But although the resident com- 
panies praise the SEEPZ facili- 
ties, growth is disappointing. 

One reason Is the shortage of 
foreign exchange which makes 
it difficult for SEEPZ properly 
to advertise its advantages 
abroad. Another is the appalling 
makeshift city of cardboard and 
canvas houses which has sprung 
up along the road to SEEPZ. It 
was not there when the zone 
was established; now it actively 
discourages foreigners from 
establishing their operations 
there: ‘Would I have to come 
through that every day," one 
businessman queried before 
deciding to locate his factory 
elsewhere. 


^WrrZEfcMND -Banting, Finance 
and, Investment” 

. ' on Monday, 

December 14 1987 

Subjects to be covered in this survey include: 

Commercial banks: earnings and potential policy changes 
Foreign banks* role in the bond and share markets. 

The function of finance companies. 

SOFEX - the Swiss Options and Financial Futures 
exchange: 

Bonds - domestic and foreign markets. 

Insurance -good domestic results could lead to renewed 
interest in expanding abroad. 

Pension Funds - introduction of new performance indices. 
Venture capital - its organisation in Switzerland. 

Bank policing and secrecy. 

For a full editorial synopsis and inf oruteSkm on advert isin g, 
please contact 

G. Breitling 

Financial Times (Switzerland) Ltd 
IS, rue du Credrier 
1201 GENEVA 
Tel: 022/311 604 

or Patricia Sunidge 
Financial Times 
Bracken House 
10 Cannon Street 
LONDON EC4P4BY 
Teh 01/248 8000 

FINANCIAL TIMES * 

EUROPE'S BUSINESS NEWSPAPER 


REGIONAL 


TMMiTSTTMl 


The Financial Times proposes to 
publish this Survey on 

MONDAY 18th JANUARY 1988 

For a full editorial synopsis and details of available 
advertisement positions, please contact: 

BRETT TRAFFORD 
on 01-248 5116 

or write to him at: 

Bracken House, 10 Cannon Street 
London EC4P 4BY - Telex: 8954871 

FINANCIAL TIMES 


I ’ I I ^ ■ V. 


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Henry Cavendish Figured It Out. 


Henry Cavendish was morbidly shy 
He took pleasure in scientific experiments 
bat certainly not in the feme they would 
bring. (If he hadn't left his pioneer work 
on electricity to gather dust in die attic, it 
would have saved others long years of 
duplicated effort.) 

In 1798, he devised an ingenious 
experiment with a rod, a wire and two 
sets of balls. It helped hip solve die 
gravitational constant, the remaining 
mystery in Newton's equation, enabling 
him to ggrimarp the earth's mass to be 
6,600,000,000,000,000,000,000 tons, 
more at less. He was right. 


At Pratt St Whitney we understand the 
challenges that face scientific pioneers. For 
example, our jet engines powered die very , . 

. first Boeing 707. Not to mention the first 
DC-8, 720, 727, DC-9, 737, 747, 767 and 
MD-80. And, not too far down the road, 
perhaps hypersonic flight on the proposed 
Orient Express. 

One new idea can open up a whok new- 
world of progress. So we and all of the more 
• than 5, 100 United Technologies’ employees 
working in Great Britain offer the highest * 
praise to Ml Cavendish for his very down- 
to-earth discoveries. 






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Financial Times Tuesday Nowmber 17 1087 


UK COMPANY NEWS 


Unilever over flbn at 9-month stage 


By FIONA THOMPSON 

VOLUME GROWTH and the 
effect of acquisitions helped Uni- 
lever, the Anglo- Dutch con- 
sumer products and foods group, 
third quarter pre-tax prof- 
9m to 


boost .. r 

its by 25 per’ cent from £31 
5400m, beating City expectations 
of about 5375m, Sales, at con- 
stant exchange rates, rose 11 per 
cent to 54.65bn (£4.19bn\ 

Yesterday’s results brought 
pre-tax profits for the nine 
months to Se 

£1.12bn, a . 

on the 5865m reported far the 
first three quarters of 1986. 
Turnover for the nine month* 
was £13.73bn (5J2.66bn). . 

Operating profit for the third 
quarter was up 37 per cent at 
£423m, compared with £308 last 


and Lipton lifting 
its in this division from 535m to 
590m. Chesebrough, acquired in 


December last year, was respon- 
sible for increasing total group 
turnover for the nine months by 
5 per cent and operating profit 
by 12 percent 

Lipton showed strong results, 
its Fun Fruit doing very well, 
and Chesebrough ’s ragout sauce 

S ained market share. Lever 
rothers. household products, 
expanded its sates spread across 
the country of Surf Powder, Sun- 
ieptember 30, 1987, to light and Surf Liquid. 

30 per cent increase In Europe, frozen foods, as 
well as food and drinks, made 


FULL-SCALE OFFER PUTS VALUE OF A$187M ON BUSHELLS 


Unilever Australia, a wholly-owned subsid- 
iary of Unilever PLC, has made an offer for 
all the shares in Bushel!* Holdings manu- 
facturer and distributer of tea. coffee and 
canned Cab fa Australia and New Zealand. 
The Unilever Group already holds a 485 
per cant interest ia Bnahefla through its 
ownership of the Brooke Bead Gro’op.vrrites 
Fiona Thompson. 

The bid values Baahells at A$187m 
(573m), and will be ia the form of a cash 
offer of A8250 per share. The price repre- 
sents a premium of 21 per cent over Boat 


ells* closing price on November IS. The 
approval of the appropriate Australia* 
authorities has been obtained and offer 
documents are due to go' oat In three 
weeks. 

For the year to Joe 27, 1987, BeaheBsl 
sales were ASZlOm with net earnings «f 
AtlQAm. 

Subsequent to the bid annou ncement, 
Unilever Australia yesterday pnrckased lm 
Bu ahe lls* shares at a price of 5ZJ0 per 
share, taking the group’s eutlds— t Snot 
48J) per cent to ML2 per cent ' 


compared with £l91m last year. 

Businesses in Unilever's third 
area - the rest of 

- performed well, lift- 
there from 
Strong sellers 
were edible fats, dairy and per- 
sonal products. While the posi- 
tion remains difficult In franco- 


phone West African countries, 
there were substantial volume 
gains in Latin America, previ- 
ously a problem area. 

The tax charge for the third 

Q uarter was 5173m, against 
133m, and interest payable 
totalled 564m, up from 548m last 
time. 

Earnings per share for the 


quarter were li.lp (9.7pT giving 
3L63p against 25-6p far the nine 
months. The company 
announced an Interim dividend 
of 3£4p, up from 2.998p. 

The shares closed ?p up at 
470p last night. • 

• Unilever yesterday con- 
firmed its intention to sell its 


Thames Board _ 

iary. It was not a core 

ana its staff had been toUL the 
intention was to dispose of itif a- 
suitable offer was made. 
January 1 th 
sport 5170m acquiring 18 com- 
panies, and disposed of 25 com- 
ting£1.6bn. 
hear. 


parties. 


Reed again expands in US 


BY RAYMOND SNOODY 

Seed International, the UK 
publishing, paper and packaging 
group yesterday continued its 
drive Into the US consumer pub- 
lishing market with an agree- 
ment to buy Modem Bride from 
Diamandis Communications for 
$50m in cash. 

It Is the second US consumer 
magazine purchase by Cahners, 
Reed's US publishing company 
which consists of more than 50 
trade and professional maga- 
zines. 

Last year the company paid 
$40m for American Baby a con- 
trolled 1.1m circulation monthly 
magazine 

"The purchase of Modem Bride 
represents an important second 
step in Cahners strategy of build- 
ing a presence in the publishing 


of specialist consumer maga- Reed which in recent months 
tines,'' Mr Peter Davia, chief has been pi 


executive of Reed International 
said yesterday. 

Modem Bnde is a naid-for bi- 
monthly with a circulation of 
326,000 and an estimated total 
readership of 235m. In the year 
to December 1987 a net profit of 
56m is forecast compared with 
$4. 7m last year. 

The purchase price is depend 
dent on the $6m profit forecast 
being met. 

As part of the deal Diaman- 
dis,the company formed last year 
as a management buy-out of the 
CBS Magazines division will 
receive $13.7m in return for 
undertaking not to set up a com- 
peting puoocation and for con- 
sultancy services. 


has been plating increasing 
emphasis on publishing, particu- 
larly in Noth America, has beat 
negotiating with Diamandis for 
some time. The UK company 
said yesterday that an offer 
made in mid-October was with- 
drawn and the price renegotiated 
“to reflect recent market devel- 
opments." 

"Our projections of the short 
term profitability of Modem 
Bride within Cahners are such 
that this np q u wri rt nn w j[J lp-wj 
to any earnings dilution,” Mr 
Davis added. 

'Reed’s profits In the year to 
March were ahead of most 
expectations at 5188m - 37 per 
cent up on last year. 


Newman Tonks Spanish buy 


Newman Tonka, the building 
supplies group which has 
launched an acquisition pro- 
gramme in Continental Europe, 
yesterday announced that it is 
paying 513m for a 90 per cent 
stake in a Spanish door compo- 
nent manufacturer. 

This is its second European 
acquisition in the past few 
months. In September it paid 
51.84m for Wehag Leichmetal, 
producer of one of West Ger- 
many's leading brands of resi- 
dential architectural hardware. 

The Spanish company is 
Telesco, which is based in Barce- 
lona, employs 60 people and is 
the Spanish market brand leader 
for overhead door closers.. It has 


annual sales of around 52m. Sr 
Elizalde, the former owner of the 
company, will retain a 10 per 
cent interest and remain general 
manager. 

Newman said Telesco's posi- 
tion In the Spanish market 
would enable it to take into the 
Spanish market many of New- 
man’s hardware products con- 
cerned with safety and security. 

Mr Doug Rogers, chief execu-j 
five of Newman, said the deal 
was part of the company's pis 
for a network of inter-related 
companies on the Continent.1 
Further European investments] 
were being explored. 


Caird disposal 


A Cafrd A Sons, p rop ert y and 
environmental services group, 
has exchanged contracts for the 
disposal of the pr opert y known 
as 28-30 Rivington Street, Lon- 
don, EC for a cash consideration 
of 5600,000. The property was- 
acquired last month. 

The board intended to develop 
e pr o perty , but the offer received 
was In excess of anticipated val- 
ues. The proceeds will add fur- 
ther to the group’s cash balance 
and will be employed as opportu- 
nities arise in new property 
iH iwnot nr ijl env i r o n ip g wtal ser- 
vices. 


Borland rises strongly 
in opening six months 


Borland International,' Cali- 
fornia-based publisher of micro- 
computer software, -raised its 
profits from 83.15m to S4A6m 
(52.77m) pre-tax in the six 
jmemths to September 30. Profits 
for the second quarter surged by 
94 per cent to f 2 au 

Saks and royalty income for 
the half year increased from 
$14J37m to S25.64m. Mr Phfiippe 
Kahn, the USM company's chair- 
men, said yesterday that growth 
in turnover and profits came not 
only bom sales of new products 
products introduced during the 
period, but also bom the contin- 
uing strength in sates of existing 
products. 

He added that this was in line 
with Borland's plan to maintain 
a product range -whereby sales 
from no one product 
revenues. 

The results for the opening 
half year included those of Ansa 
Software bom September 22, the 
effective date of the acquisition. 

Mr Kahn said Ansa was contin- 
uing to be integrated and that he 
expected to see increasing bene- 
fits to both sales and profits. 

Half year tax accounted for 
SI. 98m (Si Aim) leaving net 
Sl.04m ahead at S237m. 
amounted to 5.7 (4) 
cents or at 6 (3L5) fully 
diluted. The interim dividend is 


a same-again 0.75 cents. 

Since the half year end Bor- 
land had formed a Macintosh 
software division, thus extendi n g 
its commitment to what Mr 
Kahn described as the growing 
Matint o a h market. 

k 

• comment 

. New products are the life and 
soul of any software company - 
although sales of existing pack- 
ages fell slightly in Borland's 
first half, revenues rose by 78 
per cent. That makes predicting 
the future an even more tricky 
business than usual as indi- 
cated by last year’s profits drop, 
caused by a delayed product 
launch. For the immediate 
future, hopes are pinned on 
Quattro, the spreadsheet pro- 
gramme, which has had good 
reviews in the computer press - 
there is no guarantee, of course, 
that real sates will result How- 
ever. the upside potential -is that 
much greater if Quattro does 
become accepted. For the full 
year, analysts are looking for 
313.5m which at current 
exchange rates, puts-the shares, 
up 15p to 140p yesterday, on 

respective p/e of 17. That rat- 
far too high cat 
far too low, depending on how 

well the new products go. 


Oakwood in £1.2m property deal 


In Oakwood Group’s interim 
report on July 8, it was stated 
Car had 


that’ an offer 
•for the sale 


been accepted 
of Westminster 


This announcement appean «*e matter of record oofy 


Eagle Star Insurance Company limited 

£150,000,000 
Revolving Credit Facility 

for the purpose of 
granting residential mortgage loans 


Arranged by 

County NaxWest 


DIVIDENDS ANNOUNCED 


pre share net ex cept where otherw i se stated., 
{for scrip tea* -Kto capital tooened by rights 

§USM stock. Uhqnateaatack. Third market US 3 

- 



Amsterdam-Rotterdam Bank N.V 

London Bauch 

Bankers Trust Company 
Credit Suisse 

Dresdner Bank AktiengeseEschaft 

London Branch 

Midland Bank pic 

National Westminster Bank Group 

The Royal Bank of Canada 

The Sumitomo Bank, limited 


Basque Paribas (London) 


Bridge. Road p wntiwi . The offer 
did not procee d and those negoti- 
ations were terminated. 

The -Westminster Bridge Road 
hive Dow-been sold for! 
in cash. The prem- 
ises- were formerly the head 
office <jf a subsidiary, but. have 
been.vacant since last December. 
No income has been received in 
respect of the premises and the 
cost of maintenance and other 
outgoings has had a negative 
influence an the group's earn- 
ings. 

The premises wee included in 
the haiancp dwrt as at Septem- 
ber 30 1986 at 5556,871 andwere 
valued on the basis of open mar- 
ket value with the benefit of 
planning permission for offices 
of 30,000 ro ft (grass) an Septem 
her 21 1987 at 


Unigate down 14% at midway 
but better trend expected 


BY JUKE SMITH 

UnJgate, food, transport 
and exhibition services group, 
yesterday blamed a series of 
extraordinary factors, including 
-poor summer weather, for a 14 
per cent downturn in pre-tax 
profits. 

The market had, however, 
beat expecting a worse perfor- 
mance and the shares rose 9p to 


295p. 

.Uni 


made taxable profits 
-of 54fr3m (547.1m) on sates of 
iSLOSbn (5951. 5m) in the half 
year to October 3. Earnings par 
share were 11.7p (l3.9p) but the 
dividend was luted 30 per cent 
from 4J5p to 4.95p. Mr John 
Clement, chairman, said he 
hoped far an improved perfor- 
mance in the second half. Profits 
so far were broadly in line with 
those of last year. 

Looking further ahead, he was 
confident that the strength of 
management and the benefits 
from continuing investment 
would enable the company to 
imove ahead in 1988/9 and there- 
after. 

The cold, wet summer hit prof- 
its in the food division, with 
demand for yoghurt, soft drinks 
land red meat particularly 
affected, but other factors cited 
by the company fur the profits 
foil were 

•The high cost of pork which 



operating was profits 
Food 513.6m (51 6.4m' 


John Worhy 
"Gearing will improve” 

put margins at Mai ton Bacon 
under pressure; 

•A move away foam red meat 
eating as a result of the Cherno- 
byl nuclear accident; 

•Tlte lack of supplies of milk 
for cheese at certain tiroes 
because suppliers could get bet- 
ter prices from the EEC inter- 
vention scheme: 

The divisional break-down of 


was: UK 
513.6m (5i8.4m>, Unigate 
Dairies 513.8m (S14.om); win- 
canton, the car fleet hire and 
distribution company, 59.5 m 
(56.5m); Giltspur, exhibitions 
company, SI .7m (53.4m); Inter- 
national 56m (54.9m); other 
activities 51.1m (51.7m). 

The outstanding performer 
was Wincanton. which made 
“excellent progress" in each of its 
principal areas but Giltspur saw 
profits fall 60 par cent, partly 
because of the cost of a factory 
relocation, which Is now com- 
plete, and partly because of the 
sate of engineering subsidiaries. 

In International, the Black- 
Eyed Peas restaurants made a 
strong initial contribution. In 
spite of the weak economy in the 
south-western US. 

Net debt at the end of the half 
year was $1 77.9m against 578.7m 
-but Mr John Worby, finance 
director, said these were signifi- 
cantly distorted by the timing of 
acquisitions and disposals and 
gearing would improve. Finance 
charges were 56.7m (53m). 

The tax rate was down from 
34 per cent to 33 per cent. 

Total capital expenditure 
increased to 550m, against 538m, 
and 45 per cent of this was fear 
expansion. 

See Lex 


R-R share limits exceeded 


BY RICHARD 


OVERSEAS investors holding 
about 55Gm worth of shares in 
BoUs-Bofeet the recently priv* 
tised aero-engine maker, are to 
be forced to sell them into the 
market place .- in many roses, at 
very severe loss it entoged 
yesterday. 

The co m p a ny announced that 
its share register had now been 
mpleted and showed that the 
number of its shares in foreign 
hands was 46m above the maxi- 
mum level of 15 per cent permit- 
ted by its articles of association. 
The surplus repres ents 6 per cent 
of the total equity. ' 

Notices were being sent out 
yesterday to fodders of the 46m 


teDingthem to dispose of 
xk to Britia 


shares 

the stock to~British Investors by 
January 1L The ciders are being 
sent on a last in, first put basis. 

If holders foil to meet the 
deadline, the . company will 
arrange the sale on the fodder's 
behalf at the best price it can 
get. 

Unless the shares make a 
sharp recovery in the interven- 
ing period, the holders- will take 
heavy losses because most of 
them bought the stock at sub- 
stantially higher levels. 

The snares were issued at a 
folly-paid price of 170p in May 
this year and shot up to 232p 
when dealings began, reportedly 


oh heavy baying from overseas. 

However, they have fallen dra- 
matically since, partly because of 
fears that compulsory sales 
would become necessary and 
partly because of the market 
crash. Yesterday they were down 
another 5p at 114p • less than 
half their best price. 

The initial register takes 
account of all transfers received 
and certified up to the record 
date for dividend payment of 
November 6. Aiw shares becom- 
foreign held between then 
January 11 will be classified 
as excess holdings and will also 
have to bel 


AIC stake In 
Wills Group 

AntnUu bnwton Corpo- 
ration - the listed Australian 
investment company where fund 
management group, Clayton . 
Robard, owns a 32-5 per cent 
stake - has ended up w ith a 25i> 
cent stake in wilia . Group, 
UK-based '-finah&af - Services 
following 


Ivory & Sime rises but 
warns on market crash 


BY CLAY HARRIS 

Ivory & Skate, the Edin 
fund manager, increased in 




Funds under management 
have fallen to an estimated 


and import com; 
its -IP I 

'Investment clients bf Clayton 
Robard own a further 30.1 per 
emit of Wills. Mo re over, Tyndall 
Holdings, the UK fund manage- 
ment group which has a. 62 per 
cent stake* hi Clayton Robard, 
has another L5 per cent, and its 
own investment management 
clients have a farther 7.7 per 
cent. 

The remaining 85 
Wills is either own* 
holders who did not accept the 
offer, or has been placed out 
with institutions at 190p a share 
The listing is bring retained. 


decline of the dollar would whole, reflected a quick shift 
advgsjy faH-yep icsute. - i nto a -defensi ve-mode, the^wu- 

pany raid’ yesterday^ 


Ivory & Sime's shares have 
I underperformed the FT All 
Share index tw more than 25 per 
cent since the crash, in. part 
became ofite trusts’ high expo- 
sure to smaller US companies 
and technology issues and in 
part because of evaporation of 
takeover speculation involving 
cent of j,Antipodean investors. The shares 
by share- [were unchanged yesterday at 

I28p. 

, Turnover in the six months to 
October SO advanced by 21 per 
cent. to. £4.68m (53.87m), a 
quicker pace than the 164 per 
cent rise in administrative 
gnses to 52£9m (52 23m). In 
a dedinlng market, however, the 
position would be reversed. 


Earn 
(3. 
is 


per share rose to 
i). The Interim divi- 
_ at i-25p. 

See Lex 


US stake in ICI 

US shareholdings in Imperial 
Chemical Industries through 
Morgan Guaranty Trust is now 
10-25 per cent of the company - a 
modest fall from the level of just 
under 12 per cent seen during 
the summer. The company said, 
"We are quite happy that the 
level of trading has been as low 
as it has and pleased that the 
Americans have stuck with us." 


Company News In Brief 


WESTMINSTER 

The Financial Times proposes to 
publish a Survey on the above on 

FRIDAY UTH DECEMBER 1987 

For a full editorial synopsis and details 
of available advertisement positions, 
please contact: 

Brett Trafford 
on 01-248 9116 

or write to him at: . 

Bracken House, 10 Cannon Street, 
London, EC4F 4B Y 
Telex: 8954871 

FINANCIAL TIMES 

EUROPE'S BUSINESS NEWSPAPER 


WARD HOLDINGS has raised a 
540m syndicated revolving loan 
in order to finance its future 
activities on a much more 
cost-effective basis. 

BIZ subexfiaxy Hi-Tek Polymers 
has acquired Lyndal Chemical, a 
division of New York baaed Mfll- 
master Onyx for approximately 
USSSm. 

BOM HOLDINGS is to acquire 
Bevan Trading The terms of the 
-acquisition, which Is subject to 
.shareholder approval, include 
the initial payment of 5500,000 
followed by profit-related instal- 
ments over the next three years. 

W A HOLDING&Under the 
terms of an agreement dated 


September 9 1986 between the 
company and the vendors of KD 
Thermoplastics, the company is 
making a further consideration 
payment of £225,000 to the ven- 
dors, which Is being satisfied by 
the issue of 274,700 ordinary and 
cash payment of 5143,000. 

HARMONY LEISURE said 61 
pear cent of recent rights issue of 
13m new ordinary has been 
taken u p by shareholders. Issue 
was underwritten by Gapel-Cure 
Myers. 


MTM, folloi 
chases, now 
£.63 per cent) 


recent pur- 
2.06m shares 
in .Grampian 


This advertisement is Issued to 


person to subscribe Jar or p ur chas e shares 

PROPELLER PLC 

a ” ptra “' iss gsr* ** i9ss 

— Placing by — 

„ ■ Heseltiiie, Moss & Co 

Members of Brown Shipley Stockbrokmg Limi ted 
of 

3.3m Ordinary Shares of lp each at 45p per share 
on the Third Market of The Stock Exchange 

SHARE CAPITAL 

. . . Issued and 

Aumonsea fuUy 

£135,000 in Ordimny Shares of lp each £12X062 

OnW ShmJriS? cSSf SfoffhM 

5® made for these securities 

SJ * wuniBea 10 The Otuaaj List or to ibe Unlisted Securities Martel 

btKmess !»«5 on any weekday 
l?87froni: BMk HoU “ ys cxti P tedJ “P U> and including 4Ui December 

HESELTTNE, MOSS & CO 
Durrani House 

- -. W Faster Lane 
London EC2V 6HH 



y 





31 




‘w 




E 







Finan cia l Tiroes TuesdayNovember 17 1987 




\ 


UK COMPANY NEWS 


i-is 




i. mH .. 

■' *.'.1 


es but 
eras! 


•vre *r; 


i . - ii* 
i2 





share dealing probe 


BY CUV HARMS V 

LORD YOUNG, Trade and Indus- 
try Secretary, announced yester- 
day that inspectors iuitf been 
appointed to investigate : possible 
insider dealing, in shares of Uat 
group, the timJber^ btdldihg and 
ckrthinii group. 

The DTI also said tikt tnspec-. 
tots were currently conducting a 
total of 10 btgider dealing inves- 
tigations, of which, only one - 
involving a junior official at the 
Office of Fair Trading - had pre- 


vioiisiy . been announced. Ten 
other qfaesarp being considered 
for investigation. - 
-Inspectors were- appointed on 
October 18' w. investigate deal- 
. mgs in Unigroup shares between 
September -1 and October S. 
Appointed, under Section 177 of 
■ the =1986 Companies Act, they 
have powers to require any per- 
son to provide documents ana to 
be examined under .oath. Refusal 
ro' co-operate can carry the same 


penalty as contempt of court 
Unigroup shares were 
suspended at the' company's 
request on October & Four days 
later. Unigroup announced that 
Ur Ivor Goodman had resigned 
as chairman and said that Ur 
Goodman had riven away his 
holding of 090,000 shares - 5.37 
per cent of the company - not 
lorij 


long before the 
recipient of the 
quently sold them. 


The 
subse- 


Poor start to year for SR Gent 


. BY AUCE RA WSTHORN 

& K Gcat, one of- the leading 
suppliers. of women's wear to 
Marks and Spencer, yesterday 
announced that its trading per- 
formance - in the' first tour 
months of. the present financial 
year had been “disappointing". 

Mr Peter Wolff, chairman, - told 
shareholders at the company's 
annual meeting that the chil- 
dren's wear and casual wear 
bus in esses had fared well, but 
that this success had been insuf- 
ficient to compensate for the 
poor performance of other divi- 
sions. 

Children's and ro»mn l wear 


accounted far roughly a quarter 
of Gent's sales in us last finan- 
cial year. -The company declined 
to identify .which, areas of activ- 
ity had suffered most severely. 
But itis heavily dependent on us 
traditional dress manufacturing 
interests' and, despite "recent 
efforts to broaden the base of its 
activities; is still heavily reliant 
on Marks and Spencer. Last year 
M and S provided 90 per cent of 
its turnover. 

M and S suffered from sluggish 
clothing sales in the spring and 
summer of -this year. Wood 
Mackenzie, the stockbrokers, 


Two more rights issues crash uS^s^oSSSi 

_ thefiret half of the year will 


By NMdTatt 

A 1x35.6m rights issue, from 
United Scientific Holdings, 
the defence equipment group, 
est vfc- 


becarrte the latest 
tira of the stockrnarket collapse. 
Only 0.67 per cent of -the com- 
pany's 5.5 per cent convertible 
preference share issue has been 
taken op by existing sharehold-' 
ers and the remainder is bring 
left with the underwriters. * -v ■■ 
Marina Devdopment Gnwp, 


however, fared somewhat better 
- seeing 1.3m (l7.46m) of its 
7.45m new rights Issue shares 
taken up by its existing inves- 
tors. Again, underwriters will 

S 'ck up the rest. The Marina 
ivetopment .cash call was rais- 
ing £37-27m - most of which will 
go to fund the £23bm 
of five marinas from 
Organisation. 


estimates that its clothing sales- 
fell in real terms by mote than 5 
per cent in the six months to 
October. 

The Gent announcement Is an 
indication that U and S may also 
have lost ground in the clothing 
market during the autumn sales 
season. Gent is' a contract sup- 
plier to M and S. Under this sys- 
tem . M and S commits . Itself to 
take a spedfledvohime of cloth- 
ing from Gent. It then “calls-cfT 
parts of the contract as the sea- 
son proceeds. 

If sales fall below expectations 
then M arid S reduces the level 
of its regular call-offs.* This is 
what has happened in the past 
few months- Mr -WoUT said yes- 

in 

the first half of the year will be 
reliant on the pattern of trading 
in the Christmas sales period. 

Three years ago Gent suffered 
when M and S's sales faltered. It 
returned to profit last year, hav- 
ing diversified its production 
into other clothing sectors to 
reduce its reliance on. dresses. 

Gent recently moved into 
home' textiles - principally as a 
supplier to M and S - but this 
venture is still at an "experimen- 
tal'-stage, sides are modest and it 
has yet to breakeven. 


REGIONAL DEVELOPMENT 

The Financial Times proposes to 
■ * -publish’ 'this Survey on** 

MONDAY 18th JANUARY 1988 


For 


a full editorial synopsis and' details of available 
" advertisementpositions. "please contact: ~ ’ 

BRETT TRAFFORD 
on 01-248 5116 

or write to him at: 

Bracken House, 10 CamMa Street 
London EG4P. 4BY - Tele*: 8954871 


FINANCIAL TIMES 






f» t 

r.r.zi 


C R A NVILLE 


SPONSORED SECURITIES 


High 

206 

206 

41 

242 

188 

186 

281 

147 

171 

104 

180 

143 

102 

780 

TO 

114 

91 

124 

224 

70 

131 

264 

201 

175 


Low ■ : ■■ 'Coinpfcw' . 

133 Ass. Brtt. hid. Ordinary 

145 Ass. Brh.ind.CULS 

32 Armitase Si Rhode* 

60 BBS -Design Group < US Mi 
108 Birdoii Group 


95 Brtty Technologies . 

130 CCL Group Ordinary ■ 

99~ CCL Group 11% Cofiv. Pref. « 
136 Carhorundom Ortflnary 
91 Carborundum 7 JWo Pref. 

87 . George Blair 

119 Isis Group ■■ ~ - - - - 

59 JMcson.Group 


320 MuitUionse NV <AnWtSE> 
35 Record Holdings (S£> 


83 Record HMgs. lOpcPf-(SE).. 

59 Robert Jenkins 

.42 Scruttons 


341 Toirdey & Carilshr 

32 Trcvlmn Holdings 

56 Uni lock Holdngs «s£» — 

115 Walter Alexander (SEJ - 

190 W. S- Yeates — — 

96 Weft Yorks. IncL Hosp. (USM) 

Securities designated ISO and 4USM1 1 ar 
regulations of The Stock Exchange. Other 
subject - to the rotes of EIMBRA. 


Price 

6m» Vie* 
Change 96 

P/E 

zoo . 

O 

a.9 

43 

73 

200 

0 " 

mo . 

5j0 

■ — 

' :32. 

0 

*2 

134 

43 

60 

0 

2J. 

34 

93 

. 162 

0 

2.7 

46 

27.7 

164 

. 0 

4.7 

2.9 134 

. 265 

0 

113 

43 

63 

f 135 

0 

13.7 

3JL6 

- — 

. 150* 

-5 ■ 

5-4 

■34» 

130 

.104 

0 

10.7 

103 

— 

. 150 

-4 

3,7 

23 

3.9 

90 

' -2 . 

- — 

— 

— 

98* 

• 0 

3.4 

33 

103 

. 320 

-0 


— 

12.7 

. 70 

- 0 

OJ 

— 

144 

. 1X4 

0 

144 

12-4 

— 

. 39 

0 

— 

■ — 

23 

. 124ms 

o 

OS 

44 

4.9 

. 212 

o 

66 

34- 103 

. 70sus 

0 

06 

14 

63 

56 

+1 

26 

SO 

103 

. U5 

0 

5.9 

33 

322 

. 200 

0 

17.4 

8.7 

200 

1 132 

-3 

55 

4 3. 

140 


» dealt In 
securities 


subject 10 the rale* and 
listed above are dealt in 


Granville & Co. limited 
8 Loot lane, London ECJR 8BP 
Telephone 01-62 1 1212 
Member of FIMBRA 


Granvflfc Davies Colcpan Li mited 
■27 Lovat lane, London EC3R 8DT 
Tdepbone 01-621 1212 

Member of the Stock Exchange 


. WwM . 
lUeconununicattons 


1 and 2 Decembw; 1987 
" London 


FdrUtommionpImamtnlamees 
Atfugrtfggmgrit tog*m»*iyour 
bamnmacenUo: . . 
financial Tim— . 

uxinHvnctwgraiioa 
£rn MOOT M 

126 JennyriSHreet 
London SW1Y4UJ • 


2323 

to^2?347.£TCC)NFQ 

Ruc'QI -92521 25 


• • -•> i'j - 1< 



Nation wide 
Anglia EK* 


£300,000,000 


Floating Rate Note* 

-• Due 1996 

(Second Series) 

(Issued by Nationwide 
Building Society) 

hue r e st Rate: 
9.1425% per annum 

. ♦ 

. Interest Period; 

16 November 1987 to 
16 December; 1987 

♦ 

Interest Amount per 
£5,000 Note due 
16 December 1987: £3737 

♦ 

Interest Amount per 
£50/100 Note due 
16 December, 1987: £3 7 5.7 2 

.♦ 

Agent Bank 

Bating Brothers & Co, Limited 


ri.c 


A- 



Eartfer this month. Chase Man- 
hattan Securities confirmed that 
it had issued writs against Mr 
Goodman and Miss Linda Fitz- 
gerald, alleging breaches of 
insider trading rules, conspiracy 
and misrepresentation, ana 
claiming damages. 

Mr Robert Purdy Wilkinson, 
head of the Stock Exchange's 
surveillance department. Is one 
of the Unigroup inspectors. The 
other is- Mr Stephen Phlip Wal- 
ler,, a junior counsel. 

Phoenix buys 
Cox Long in 
£1.6m deal 

Ftocadr -Timber has acquired 
Cox Long, Staffordshire-based 
timber importing, merchanting 
and. components company. It is 
paving 51.6m cash, plus a 
deferred profit-related payment 
of up to 5250,000, dependent on 
the profits of Cox Long for the 
year. to March 31 1987. 

The acquisition of Cox Long Is 
part- of Phoenix's new strategy, 
which concentrates on three core 
areas - property care services, 
timber imparting and distribu- 
tion! and the manufacture of tim- 
ber-related building materials. 

.Mr. . Peter Quinn, chairman, 
said- the . acquisition would 
extend Phoenix's coverage in the 
important Midlands market. 

The present management of 
Cox Long will continue to man- 
age the business. Cox Long 
reported pre-tax profits - of 
5102,000 on total sales of 58.9m 
for tiie year to March 81 1987, 
although Mr Quinn expects a sig- 
nificant improvement in profits. 

•Cox lxmg fa Phoenix s third 
acquisition since Mr Quinn 
became chairman in March 19%. 
Since then, losses of 5973,000 for 
the year to March 1986 have 
been transformed into pre-tax 
profits of '5641,000 far the year 
to March 1987. 

The purchase of Cox Longuses 
the 'remaining cash from Phoe- 
nix's 53.7m eights issue in June. 
Gross capital gearing is now up 
to 80* 


SAC Inti 
doubles 
profits 
to £3.2m 

SAC International, the USM 
quoted design engineering 
group, almost doubled its 
pretax profit from 51.66m 
to 53.24m in the year to end 
August 31 on turnover 
which eras 89 per cent 
ahead at 5884m. 

However, Mr Roger Smed> 
ley, chairman, pointed out 
that this represented a 
shortfall of £946,000 in the 
profit forecast of &9.1m 

(e xclu ding the acquisition* 
of 181, Sabre and B & X Tay- 
lor) made in July 1987 at 
the time iof the acquisition 
of B& 


cdpal 

fall were: . a reduction in 
forecast profit amounting 
to 5346,000 due to customer 
selected eub-eon tractors 
failing to deliver within the 
original timescale certain 
key components on an over- 
seas contract: a loss of 
profit amounting to 
£180,000 due to retaining 
design staff nendSmc certain 
contracts expected prior to 
the year end: In August a 
major client of the US oper- 
ation went into bankruptcy 
which resulted in a bad debt 
of £129,000 and an account- 
ing error in the third quar- 
ter within one of the oper- 
ating companies in the 
treatment of an advanced 
payment of £213,000 and in 
the recording of credit 
notes totalling £80,#00. 

Gash in hand mid at the 
bank totalled £4.64m 
(£1.4uQ at August 81 last. 

Gross profits last year 
totalled 59.62m (£&9m) and 
adminstration costs to 
BMNha (52.15m). There was 
sn exceptional debit of 
£129,000. Tax took SlJn 
(£647,000) leaving earnings 
atl0.64pC8J5p) 

The final dividend is 2Jp 
(l^Bp) 


Beazer bid to buy minority 
holding values Tod at £29m 


BY PHILIP COGGAN 

Tod, the plastics manufacturer, 
fa no longer going to survive on 
its tod! Spun off onto the 
Unlisted Securities Market by C 
H Beazer in 1984, the construc- 
tion company is now offering to 
buy back the minority stake and 
make Tod a wholly-owned sub- 
sidiary once again. 

Beazer is offering 260p per 
share in cash for the 31 per cent 
of Tod which it does not already 
own. The offer values Tod at 
529m, compared with the 56.6m 
market capitalisation which it 
had when it joined the USM 
three years ago. 

The decision to re-absorb Tod 
into the parent group was only 
made very recently. Just two 
months ago, Tod raised 57.2m 
via a rights issue to fund the 
acquisition of Gilts pur Technolo- 


gies and Wincanton Engineering 
from the Unigate group. At that 
time, said Beazer, it haa no plans 
to buy the minority holding 

However, although Tod's 
results for the year ended June 
80 were satisfactory - it made 
pre-tax profits of 52.1m - the 
company's subsequent perfor- 
mance has not matched expecta- 
tions. 

Problems were experienced in 
particular at Straeker Construc- 
tion where delays on a major 
refurbishment contract and pro- 
visions on certain other con- 
tracts are likely to have a sub- 
stantial impact on the current 

year's trading results. 

Beazer now thinks that it 
would be in the best interests for 
Tod to revert to being a com- 
pletely owned subsidiary. Tod 


has, believes Beazer, succeeded 
only to a limited extent in estab- 
lishing a separate identity, hav- 
ing under 2o0 shareholders and a 
limited market in its stock. 

Absorption by the parent com- 
pany would, argues Beazer, 
enusre consistency of commer- 
cial and other objectives and free 
the management from the need 
to promote Tod as an indepen- 
dent public company. Tod will 
become part of Beazer's products 
and services division. 

The offer price of 260p is con- 
sidered fair and reasonable by 
Tod's advisers, Phillips & Drew, 

and represents a 18 per cent pre- 
mium over Friday's closing price 
of 220p and a 5 per cent pre- 
mium over September's rights 
price of 248p. 


TR set to reconstruct trust 


. BY NIKKI TAIT 

Touche Remnant, Britain's 
largest investment trust group, is 
currently looking at ways of 
reconstructing another of its 
funds - this time, the 5320m TR 
Technology Investment Trust - 
with a view to reducing the dif- 
ference between the fund's asset 
backing and its share price. 

News that the technology 
fund's board fa considering dis- 
count-eliminating moves comes 
less than one week after share- 
holders in the 5161m TR Pacific 
Basin Investment Trust 
approved a scheme giving them 
tine option of switching into a 
new investment trust, specialis- 
ing in smaller Far Eastern mar- 
kets or a Guernsey-based invest- 
ment company, which will trade 
at a price directly related to net 
asset value. 

The TR Technology board said 
yesterday that it ‘expects to be 
.able to put proposals to share- 
holders in due course.' However, 
TR stressed that the scheme sug- 
gested would not necessarily be a 


carbon copy of that adopted by 
TR Pacific Basin. 

“TR Technology has a very dif- 
ferent structure and investment 
emphasis," said Mr Brian Ash- 
ford-Russell, TR Technology 
a lt has a relatively 


high proportion of illiquid and 
unquoted stocks, ana we're 


manager. 

proportii 

>ted stocks, and 
looking at a number of schemes 
at the moment' 

Over the past two months, the 
TR Technology fund has seen a 
substantial shareholding built up 
by a Jersey-based company, Fir- 
mandate Investments, and yes- 
terday the investor announced a 
further 0.3 per cent addition, 
taking its total holding to 71.9m 
shares or 16.64 per cent 
- The ultimate ownership of Fir- 
man dale is still unclear, 
although it is rumoured to trace 
through Hong Kong, possibly to 
Antipodean Interests. 

Firmandale is, however, 
advised by fund management 
group, Berkeley Govett. 

Yesterday, TR Technology 
unveiled half-time figures show- 


ing that net asset backing at the 
trust rose by 16.8 per cent to 
100.3p a share in the six months 
<lo end-September. By end-Ocbo- 
ber, however, the figure had 
dropped back sharply to ?3£p. 

Managers say that around 47 
per cent of tne trust's invest- 
ments were in the States ahead 
of the crash, and there have sub- 
sequently been problems over 
the illiquidity of stocks, espe- 
cially amongst the smaller com- 
panies. 

However, Lhe broad strategy fa 
to repatriate mouc-y from its 
'large company" US investments 
and ‘look far value’ in the UIC 
The US proportion of the portfo- 
lio should drop to around 40 per 
cent eventually - of which per- 
haps 10 per cent might be 
unquoteds. 

Tne interim dividend fa being 
increased from 0.25p to 0.3p, as 
part of the planned reduction in 
disparity between interim and 
final payouts. Revenue before 
tax slipped slightly in the six 
months to S3. 34m (53.43m). 


WHAT THEY HEEDED MOST 
WAS A SHOWER. 







« *•- . 

■ 

v". 

• < .•O-jfr *. 

• '• ' !>-'*■ 
- c-i-;'-* • 




Everything about the-North Sea is extreme. 
'Even the shower cubicles have to be fireproof. 

lo someone whose business it is to produce 
oil, that’s just the sort of detail that might be 
overlooked. 

Butnotifyour support services are provided 
by BET. 

Maybe that’s why virtually every rig in the 
North Sea relies on Sparrows Offshore to keep 
their vital lifelines operating. 

Food, equipment, spares have to be 
snatched from the heaving decks of ships as 
much as 150 feet below the platform by crane. 

That takes exceptionally skilled Sparrows 
trained operators. Supported by an on-call main- 
tenance package. Uniquely designed for offshore 
installations and backed up by the Sparrows 
Flying Squad. 

It means cranes break .down less and are 
. back at work quicker. Whatever business you're 
in, that has to make economic sense. 

Like the understructure maintenance 
scaffolding Aberdeen Scaffolding supplies, HATs 
external painting or the constant battle against 
the elements waged by Deborah Insulation 
Sendee; nothing can afford to fail. 

But machines don’t work without people. 
Which brings us back to the showers. 

Like everything HAT supplies to the rigs, 
they’re built to ensure as comfortable a life as 
possible. Which means everything from 
restaurants to medical bays. It’s why Walport 
supplies videos and Rediffrision provides back- 
ground music. 

It's the integration of all these companies, 
with their common commitment to service, that 
makes BET the company it is. 

And whether we’re successful might be 
judged, at the end of a gruelling day, on whether 
there’s a hot shower waiting for you or not 

For a copy of our half year results, write to 
Christopher Legge, BET Public Limited Company, 
Stratton House, Piccadilly, London W1Y 6AS. 



YOU HEED NEVER NOTICE US. 





32 


UK COMPANY NEWS 


United Spring finally 
merges with Ratcliffe 


BY MIKE SMITH 

TWO months of on-off merger 
talks ended successfully yester- 
day when United Spring and. 
Steel made an fillJgm agreed 
bid for Ratcliffe Industries to 
create one of Britain's largest 
spring manufacturers. 

United Industries, as the 
enlarged group will be called, 
intends to use the merger to 
bring about further rationalisa- 
tion in an Industry which has 
Suffered from overcapacity in 
recent years. It was unable to say 
yesterday whether any redun- 
dancies would be Involved 
among the two companies’ 1,000 
workforce. 

Yesterday's deal was second 
time lucky for the two groups. 
They first agreed a merger on 
October 16 but Black Monday 
intervened before they had rime 
to announce a plan by which 
United would have offered £23m 
for Ratcliffe. In the subsequent 
shares slide, Ratcliffe suffered 
more than United and talks were 
suspended. 

Mr John Cowen, executive 
chairman of Ratcliffe who will 
take on the same role at United 
Industries, said that the spring 
Industry was now profitable 
after the problems of the last 
few years. 


However, there were still fur- 
ther rationalisation opportunities 
and this was the quantum leap 
needed. Further acquisitions are 
planned. 

One consequence of the 

merger will be the closure of 

Ratcliffe "s Rochdale plant. 

Mr Cowen said another advan- 
tage of the merger was that 
United's Dutch factories would 
be able to help satisfy five-year 
contracts which Ratcliffe had to 
produce springs on the continent 
for Automotive Products. 


August Is performing above. 


expectations. 
The r 


merger is to be achieved 
through United Spring offering 
seven of its shares for every four 
in Ratcliffe. At yesterday’s 
United dosing price of 79p, u 
lp, each Ratcliffe share was val 
ued at 13Sp, against Friday's 
close of 138pL 

United Suing, which is capi- 
talised at about £13J95ra, would 
have to issue 14.21m shares, rep-' 
resenting about 46 per cent of 
the enlarged group, if the offer is 


nr Automotive Products. - the enlarged grou; 

Springs and pressings will con- fully accepted, 
rlbute about half of the BBA, the moh 


tribute 

enlarged group's turnover with 
rest coming from food processing 
machinery, cutting tools ana 
small parts storage. 

United Spring estimates that 
its profits before tax for the year 
ended last September were at 
least £1.6m, against £1.4m in 
1986, and earnings per share 
were 6p. A final dividend of lJSp 
is forecast. 

Ratcliffe expects to turn round 
last year's losses of more than 
£80,000 to be turned into pre-tax 
profits of at least £lm in the 
year to next March. Earnings of 
not less than lObp are forecast 
In addition it says the Marwin 
cutting toll company acquired in 


motor components 
group which holds stakes in both 
companies and promoted talks 
between them, has already 
assented its 24 per cent of Rat- 
cliffe to the deal. Directors, who 
hold another 9 per cent, have 
also given irrevocable undertak- 


ing to accept. 


'oLlowlng completion, all 
members of the Ratcliffe board 
will become directors of United 
Industries. A new group manag- 
ing director is being sought to 
work with Mr Cowen, who was 
previously Ratcliffe chief execu- 
tive as well as chairman. 

Mr Brian Fenwick-Smith Is to 
down ss United Spring 


step dowi 
chairman. 


WCRS to take stake in Finlan 


BY NIKKI TATT 

WCRS, the fast-growing 
advertising agency and commu- 
nications group, is to take a nearby Comyn Chlng Triangle, 
stake of just over 5 per cent In and Ixworth House in Kensing- 
Finlan - whose interests range ' ton. 
from paper and building materi- 


the two companies already have 
a joint venture deal), a site at the 
Chlng 


£600,000 of convertible prefer- 
ence shares in return. The pref- 
erence shares are covertibte on a 


als distribution to property 
development - in return for the 
disposal of certain property 
interests in central London to 
Finlan. 

The property interests 
Involved are a site in Covent 
Garden's Long Acre (on which 


The three properties will go to 
form a new wholly-owned sub- 
sidiary within Finlan, to be 
called Midtown. Midtown will 
take on the services of the exist- 
ing development team, and 
WCRS will receive l.lra new 
ordinary shares in Finlan plus 


years 

For maximum conversion. Mid- 
town will need to make a cumu- 
lative £6m before tax. With Fin- 
lan shares up 4p at 92p 
yesterday, the 5.8 per cent stake 
is worth £lm. The properties are 
currently in WCRS's books at 
51.8m. 


Spandex 
boosts 
profit 
by 70% 

Spandex, Bristol-based sign- 
making equipment distributor, 
reported Interim — “ “ 


■up by 70 per cent 

Dobson, chairman and managing 
director, said the scene was set 
for further growth. 

On turnover up by 79 per cent 
from S5.38m to £9.66iu in the six 
months to the end of July 1987 
profits rose to £l_26ni against 
£740,000. The comparative fig- 
ures have been adjusted to 
include Ultram&rk Adhesive 
Products on a merger accounting 
basis. 

Earnings pe - lOp share for this 
USM-quoted company came out 
at 8p (5.1 pi An interim dividend 
of Ip is being 
£95,000. The tax 
£495,000 (£306,000). 

Mr Dobson said the com. 
had continued to expand its 
range of products while increas- 
ing market penetration of exist- 
ing products. Exports were being 
enhanced by the improvznent of 
its overseas distribution. 

Ultramark, which was 
acqyuired in June this year, was 
proving a mast beneficial acqui- 
sition with performance ahead of 
target, he added. 

A breakdown of the turnover 
figure showed that computers 
accounted for 54.62m (52 
materials 52.66m (SL13m>. sigh 
systems £700,000 (£506.000) and 
Jltramark 5 1. 67m (51.37m). 

Clyde Blowers down 

[Clyde Blowers, manufacturer 
of soot blowing equipment and 
valves and controls for land and 
Imarine boilers, reported reduced 
; taxable profits in the year to 
August 

On turnover up from £3. 33m 
to £3. 72m, and investment 
income of £192,537 (£181,279), 
the pre-tax result came out 14 
per cent lower at £208^34 

A final dividend uf 6.32p Is 
[proposed 


Cadbury seeking 
MPs’ support 
against predator 


BY NIKKI TAIT 

Cadbury -Schweppes, the 

confectionery and soft drinks 
company where US-based Gen- 
eral Cinema raised its stake to 
18.2 per cent via a stock market 
raid last week, has written to 
members of parliament urging 
Government concern about 
“businesses put into play for 
short-term speculative reasons." 

In a letter to some 30 MPs 
whose constituencies take in 
Cadbury interests, chairman Sir 
Adrian Cadbury says that he 
believes "the Government should 
be concerned about the serious 
consequences of such rapid 
build-ups of substantial interests 
which rail below the percentage 
threshold of merger control regu- 
lations." - ■ 

"I would ask you to impress 
Upon the Government the urgent 
need to express this concern 
publicly and to introduce appro- 
priate changes in future legisla- 
tion on mergers policy”, he 


interest before a potential preda- 
tor has built up a stake large 
enough to influence the actions 
which the board may take or 
wish to take." . 

Contrasting UK regulations 
with those applied in the US, he 
says the General Cinema interest 
- together with the state of capi- 
tal markets and the regulatory 
environment - will make It more 
difficult for Cadbury to take 
decisions which are in the best 
long-term interests of the busi- 


iir Adrian points out the 
absence of any mechanism for 
Government "to review whether 
action such as has been taken by 
General Cinema is in the public 


Yesterday, the UK group added 
that it has still not had any 
direct contact with General Cin- 
ema - nor received any request 
for boardroom representation. 

General Cinema, a diversified 
US theatre chain and soft drinks 
bottler, took an initial 85 per 
cent interest in Cadbury in Janu- 
ary and said that it would not 
make an offer for the company 
for at least a year unless there 
was some material change in the 
circumstances. 

The US company commented 
after last Tuesday's raid that the 
shares were bring bought for 
‘investment purposes.”* 


SHARE STAKES 


The following changes in share 
stakes were reported during the 
past week: 

Newman Industries - Mr 

John CMarley, director, bought 

20.000 ordinary at 36p on 
November & 

Davidson. Pearce Group - Mr 
Daniel Houghton Hodson bought 

30.000 shares at 126p on Novem- 
ber 6 and 70,000 at 113p on 
November 6. 

Automated Security (Hold- 
ings) - Mr Kenneth Madarlane 
Coupar, director, bought 10,000 
ordinary . at 210p and holds 
83,128 (0.1186 per cent). 

International Business Com- 
munications (Holdings) - At 



INTERIM RESULTS 

IN BRIEF 

6 months to 
30 Sept 1987 
'£000 

6 to 

30 Sept 1986 
£000 

%ar to 

31 March 1987 
£000 

Turnover 

43,254 

41308 

85,477 

Pre-Thx Profits 

3,418 

2,825 

5,749 

Earnings per Share 

337p 

2.77p 

5.83p 

Dividends per Share 

0.63p 

0J525p 

1.95p 


Bardon 
shows increased 

resourcefulness. 


Traditionally Bardoris main strength 
lies in its resources. For many years now 
it has been extracting high quality stone 
from its quarries, much of which is used 
on Britain^ motorways and runways. 

It is a market leader in this sector 
A position it is capitalising on with an 
ambitious investment programme. 

It is now exploiting these resources 
by developing its other core businesses, 
both organically and by acquisition. 

The fuel distribution operation now 
has 18 depots throughout the UK Steer 
Tyres has expanded its network of 


outlets in the Midlands and East A nglia 
The Concrete Products division has 
increased its capacity with the acquisi- 
tion of Cementcraft Concrete Products. 

As Chairman Peter Tom says: “With 
both turnover and profits reaching 
record levels at the interim stage, 

I remain optimistic about the abilily of 
the Group to make progress” 

Bardon Group PLC 

For copes of the interim reports please contact 
KJ Cure, Company Secrctaiy, Bardon Hill, 
Leicester LE6 2TL. Telephone: (0530) 510088. 


cut holding by 200,000 to LOlm, 
Mr F.H.W~Komhoff, director, sold 

200.000 and holds 657,000 and 
Mr J.WJ.Geevers, director, holds 

I. 8m after selling 200,000. 
Egerton Trust - Summerhill 

Stud bought 50,000 ordinary at 
175p on October 28. 

A & M Group - On November 
6 Mr Grahame Fazquah, director, 
bought 20,000 shares at an aver- 
age price of 13p. 

Raise Industries - Mr A.NH 
Rudd, non-executive chairman, 
bought 100,000 shares at 70p and 
holds 1.89m shares and Mr 

J. H. Bancroft, director, bought 

. 20,000 at same price. 

Grand Central Investment 
Holdings - On November 10 Mr I 
Nahappan, director, bought 

100.000 shares and Mr 

C. J.Quelch, director, bought 
110,000. 

Hawley Group - Mr NLA Ash- 
croft, director, has acquired an 
interest in 348,000 common 
shares. 

Falcon Industries - Mr 
M.WJlindmarch, director, holds 
4.1m shares after buying 25,000 
ordinary at 68pt 
ISA International - Mr 

D. Heap, director, holds ,1.85m 
(9.49 pier cent) following the 
"buying bT'shSTes between Octo- 
ber 15 and November 10. 

Blue Arrow - Mr M. Fromstein 
acquired 100,000 shares at 75p. 

The Property Trust - Mr 
B.S.Halalri, director, bought 5m 
ordinary (0.65 per cent). 

Keteoo - Mr Walter Dickson, 
chairman, increased beneficial 
interest in ordinary by 25,000 to 

125.000 (1.3 per cent). - . 
Kalamazoo - Mrs DJM.BJMb- 

ben, wife of director Mr K.F.Dib- 
ben, bought IOjOOO shares at 28p 
on November 10. 

Hegelian Properties - On 
November 11 Mr L.S. Walton, 
director, bought 1,000 shares, Mr 
J.L.Goldstone, director, 20,000 
and Mr J A. Derby, director. 
13,000. 


Financial Ti mesTucsday Novcm bcrj7Jj?87 

NEW from 



UNIT TRUST 
YEAR BOOK 

autumn update 

1987—— 


. A companion to the Unit Trust Tear Book 1987, 
the Autumn Update details the 100 plus trusts 
launched since February and includes new 
performance tables and advisory articles. The 
Update analyses: • management group • trustee 
• date formed • hunch price • fond tvpc and 
investment objective • investment advisers • 
minimum investment • charges • when price 
quoted • estimated yield • available schemes and 
life assurance links. 

‘As a special introductory offer you can obtain 
both the Unit Trust Year Book Autumn 
Update (usual price £9.5Q UK £12 /US$17 
overseas) and the Unit Trust Tear Book (usual 
price £24UK£29/US$40 overseas) fora 
Combined price of just £29UK£36.50/TJS$50 
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An advertisement appeared in the 
Financial limes on 9 November 
promoting the LBJVI *87* Exhibition at 
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This exhibition dosed on FYiday 6 
November. The Financial Times regrets 
any Inconvenience caused to LBJVf. or to 
its readers 



VOLEX 

GROUP 

"Electrical Controls and Communications Systems' 

Interim Report 

tor tfio six months ended 30 September 1987 (unaudited) 




Six months 
ended 
30.9.87 
.£000 

Six months 
ended 
30.9.86 
£000 

Year 

ended 

31.3.87 

£000 

Turnover 

37,311 

31,651 

67,820 

Profit before tax - 

2,817 

2.078 

5423 

Profit after tax 

. 2,310 

1,704 

4455 

Earnings per ordinary 
share 

15.2p 

ll^p 

29.4p 

Dividend per ordinary 
share 

4.0p 

3.3p 

10.0p 


* Turnover up 18% - profits up 35% 

Capital Expenditure considerably increased 

* Dividend up 20% 

% Satisfactory second half year expected 

* CQPfesof/heftjfljnterirn Report may be ablafaxt fiw The Socmlafy 

’ volex group pie ~ 1 

w>tex House, Ussaciel Street, Salford M6 6AP 


V 








•*. . 


'Her.. 



Financial TimesTucsday November 17 1987 


33 



UK COMPANY NEWS 



surges to £12.7m 


A*! 'p ( 




*. i .. ■< 

-Si* 

‘" 'i •„. 


PRE-TAX profits of Wardle 
Storeys, more than doubled 
from 55.6I131 to & 12.74m iritfae 
year to Augu« 3l ott turnover 
which increased fronr&gl.Q^feivto 
£77-25m. . ■•• ' 

With earnings up from 2&8p to’ 
35.2p per 10p ordinary ' share- 
holders get a 50 per centiocetin 
the total trith » pro- 

posed final of 6.5p mating 9p 
against 6p. 

Both of Wardle Storey’s divi- 
sions had a successful year. The 
technical products division - the 
original core business -increased 
operating profits by 7E. pier. 
while operating profits of the 
safety arid survival equipment 
division- the former RFD busi- 
ness acquired last year - more - 
than doubled on ft strictly bora- . 
parable basis. . 

There was a sharp increase in 
interest receivable, up from 
5388,000 to 5156m arid the' sec- 
ond half included a contribution 
from the coated Mirlcs 
of Weston Hyde Products; 1988 
will see increasing benefits from 
this acquisition. 

Reorganisation and relocation 
of the KFD inflatnblea business 


in Duiununy-haa been com- 
pleted and the company's para- 
diutes . operation ^ operating on 
a higher, level , of Activity than 

M^la^asa! of^arnrpl us assets 
referred to In last yeart- report 
has tafcen .piac& SinCethe year 

hat bees stade ^ti^Oo^mlng 
rate andonly .the final .payment 
remainsito be made. Thl» will be 
received in liav 1988. 

The boani said that emphasim 
would continue to be placed on 
good management, fight finan- 
cial control and strong attention 
to cash generation, The campany 

already lias * very strong cash 
position, is involved in a wide 
spread of Industrial sectors, is in 
specialist market segments, has a 
relatively low exposure to the US 
market mui has strong margins. 

Profit from.' continuing 
operations last year amounted to 
510.36m (54.66m) while profit 
earned , on businesses^ aoki was 
5830,000. 

Tt emerged at 
Sill 18m fttomli tax took 
5422m (5155m) and the 



Brian Taylor, rnnitfag director 
of Wardle Storey*. 


no minorities 


credit). 

There was an 

deb it of 51.6m which relai 
mainly to the unsuccessful offer 
time (£3.000 for Chamberlain Phipps . last' 


April/May 

•comment 

Perhaps Chamberlain Phipps 
shareholders did Brian Taylor a 
favour by rejecting Wanflea bid. 
Although he ended up paying 
51.4m in abortive bid costs, he 
saved paying £62m for a busi- 
ness now capitalised at around 
510m less and he has 534m in 
cash, with more piling up, with 
which to pick and choose bar- 
gains in a bear market. Wardle 
certainly seems to have its exist- 
ing businesses well under con- 
trol, with the 75 per cent 
increase in technical products 
particularly impressive; although 
pvc prices rose 25 per cent, the 
company was able to pass them 
on to customers. Mr Taylor is 
Convinced he can squeeze more 
margin improvements out of 
technical products and there are 
certainly cost benefits yet to be 
realised in safety and survival 
equipment. All that leaves the 
group on target for pre-tax prof- 
its of 515.5m this year. After yes- 
terday's price jump to 495ft the 
shares are on a prospective p/e. 
of 12. 




■ih 


Woodchester rises sharply 


9-< 

ro-N 


Woodchester Invest- 
ment*, the Dublin-based finance 
and leasing company whose ulti- 
mate parent is British and Com- 
monwealth Holdings, increased 
its pre-tax profits more than 
four-fold in the six -months end- 
ing September 30 1987. : . * 

The profit, which included, the 
company's share of the earnings 


of 


earnings 
Bank and -of -two 


new associate companies, Moor- 
gate Mercantile and Lookers for 
an appropriate part of the 
amounted to lR54*8m 


(54.4m) compared with 
IRSl.Olm. 

An increased interim dividend 
of' 0.8p was declared compared 
with 0.5p for tite corresponding 

*^Hie resnSs^fo not include any 
effects of the substantial stream 
of hew business available 
through the company’s relation- ' 
ship with Lookers. 

Subsequent to September. 30, 
the company reached agre em ent 
to acquire a controlling interest 
in ha former associate company. 


SIL and Shannon International 
Leasing and Financial Services. 
In addition SIL, together with 
British and Commonwealth, has 
established a new joint venture 
financial services company to be 
based in the International Ftna 
dal Services Centre in the Cu 
toms House Dock development. 

Gross rentals in the half year 
amounted to 53357m (56.85m): 
tax took 5725,283 (5119,921) ana 
earnings per 20p share were 4.4p 
(L®4p adjusted). 


Volex up 36% to £2.82m 


THE FURTHER improvement in 
trading foreshadowed at the time 

of the record annual juafits in 

June has materialised' I otToIol. 

the Manchester-baaed electrical 

group, and pre-tax profits have 

moved up by 36 per/cent to 
S282m^hv the half-year to end- 

Phe outcome resulted from 
" turnover up from S£ L65m to 
- — 53721m. After a debit < f 525,000 

relating to the group's share of 

losses incurred by relat d comps-- 

nies, interest charges o £381,000 

, . (5367,000), and tax oi '5507,000 
(5374,0001 earnings per shares 
rose to l6.2p BgainstlllJfo last 
time. I 

The interim dividend 
increased to 4p (32p) 

. The directors expected the 


trend to continue in the second 
half, and stated that capital 

expenditure would be increased 

to ensure future growth. 

They added that the spread of 
group activities which includes 
.-automobile wiring systems, 
moulded plugs and connectors, 
specialist communication cables 

and e l ectrical wiring accessories 

would give opportunities . for 
sound growth. 

CHE8 TBRFIBLP PROPER- 
TIES Is seeking approval of pref- 
erence shareholders for the pur- 
chase fay the Company of up to 
Ira of its own ordinary shares at 

prices between 2Sp and 660p per 

share; Approval has already been 
given fay onbnaiy shareholders 
It the last A6M. - 


• «> 4 • — »«. 
i-j ils 

V 

; ry ‘ 

i rav 

I lni?3 ?£ 

IdX: 


BOARD MEETINGS 


Iha blowing c o n pra too Im natH 

tart mrafing* 10 0 w Stock End 

mMUngt are iwrib M to tn 


of 

Ejachsngo. Sucfl 

meatoigg m minify htod tor toe purpora o < 

Mtatong dMtondo. Official nfcadcimv* rat 
•ratable m to wftatmr the dMdondi an Hens 

wjlnyto and too autHMriora tovMn beta* am 

breed nUy on toto yea's aratoHn. 

TODAY 

MflMw-CML 


Mctamtoms. C£. (Wh, Mmt 
taml, tit NoRh America kMMftnenl 


' _ ■ . ■ ruiUKMTtt 

CtancarySocarfltae . 

UEbEm«A<MM 

JuRRu&r 


Torffionaora. 


Tm HokfcxJ* . 

Toe J 


taZ 

Nwas 

New 19 
NorS 
Oral 
New & 
MOV IS 
DocS 
Draft 


Crave I 


Thomas Robinson 

Thomas Robinson has 
acquired the Dane Motor Com- 
panies in both Chester and 
Wrexham for a total of 53m cash 
.They are motor dealers with the 
franchise for Volkswagen Audi 
and Golf cars. In the year to 
June 30 1987, the Dane profit 
was 5619,000 out of a total turn- 
over of 578m .compared with 
5376,000 out of 55.4m in the pre- 
vious year.Group net assets at 
June 30 were 5443,000. 

BET expansion 

BET, the international services 
company, has acquired Bob Tait 
Plant Hire (Aberdeen) for 
5945,000, a consideration com- 
prising 5756,000 in cash and the 
remainder by the issue of 87,600 
new shares valued at 5189,000. 

Bob Tut is one of Aberdeen's 
leading small plant and tool hire 
companies offering a range of 
equipment for hire or sale to the 
onshore, offshore and drawrarifa 
markets. 

BET said that thy acquisition 
was another step in extending its 
national coverage in this service 
sector. 

HONORBILT GROUP has 

acquired Robert Van Gils 
Designs for 510,000 which will 
be satisfied by the issue of 35,383 
new HonorbUt ordinary shares. 
Further consideration will be 
paid ba sed on Van Designs 
profits calculated over a five 
year period. This mn^irfpe atinn 
wll not exceed 51.2m. 


t 


(FINANCIAL PLANNING FOR. 
THE INDIVIDUAL 
byAUmKd^Rtrtn^Gnmt'Tbmtm. 

(2ndEdititm) - ■ - 

Completely revised and updated in the fight rf major 
changes mkgj&laiiqn and the marketplace, this grade 
provides you with essential tnfbanarioa on investment 
planning^ unit crusts and investment bonds, pennon 
arrangements, tax planning, personal pensions, 


c and a*DyingTtdiIv Log*. Publish ed in 
a s so riari on with tbc Institute of C har t er ed 
Accountants. ... 

Pricer £9.95 UK £12ADS$17« 


Publishe d October 3987. 

blNVESTENGFORBEGINNERS 

byDamdO’Sbt* 

Thniavestmcnc guide analyses inapractical way the 
basic principles (rfsrockmarket investment, discusses 


WORKING ABROAD - 
THE EXPATRIATE’S GUIDE 

By David Totag (3rd Edition) 

Co n sklc ra bly expanded, the 3{d edition ofWorkrag - 
Abroad is the indispensable guide to living and 
working overseas. Offering advice on all the essential 
aspects- both pcnoaal axid financial— of moving and 
working abroad, die book helps expatriates f» 
maximise thebenefits of overseas employment. Dorft 
leave home without it. 

Price- £8.95 UK £U7USS 16 overseas. 

PaMished November 1987. 

. A GUIDE TO FINANCIALTTMES 
STATISTICS 

(4tb Edition) m 

Do you ccaUy know how to gee the most out of the 
statistics pages ofthcFT?Thc Guide provides the 
answers. It gives all the infonnation to make the FT 
statistics work fi>r you and enable you to benefit 
financially. Invaluable to both tbc expert and the 
general reader wishing to know how the market works. 
Price £1L50 UR £13/USS19« 

Pubiuhed November 1987. 


investment, examines a whole range of i 
essentials such as die interpretation of company 
accounts, and gives an up-to-date review of relevant tax 
rules. Anklea! guide for people new to foe scockntarket, 
as well as expats. 

Price: £980 UK £12/US5 17 oversea*. 

Published January 1987. 

INVESTOR’S GUIDETO 
THE STOCKMARKET 

by Gordon Cummings 

pkteiy revised and updated in die light of the ‘Big 
, this edition explains the workings of the 
market and how to profit from it the D-I-Y- way. 

It gives advice on how to set up and manage an 

in ve stm ent portfolio, and make the best use of your 

capital 

Price: £980 UK £UAJS$17< 

Published Nowanber 1986; 


Rnmcal Tores Business Information, 
017992002. (mail order address only) 

Please note poytneratmiittxrMinpaivo^ indudeposneiaodpaddng. 



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Be gga red in England No. 980896. 735 


Share 
Drug up 
by 24% 


Share Drug Stores* the 
USM-quoted drug store chain, 
lifted pre-tax profits by 24 
per cent from 51.79m to 
52.21m in the year ending 
August 29 1987. 

Turnover rose 41 per cent 
from 535.44m to 550.14m. 
There Is a recommended final 
dividend or 18p (18p) mak- 
ing 3p (2.4p) for the year. 

After tax of 5715,000 
(£590,000), earnings per lOp 
share increased to 14.2p 
(IZjdp). 

Mr Ai*n Prince, 
said that trading so fhr thin 
year has been encouraging 
and the company expects 
excellent results next year. 

Of the 40 stores opened dur- 
ing the last financial year, 16 
were acquired from the BO- 
Ungton Group in Jnne and 
Although these did not con- 
tribute to the trading year 
Just ended, they were expec- 
ted to generate profits this 
year. 

Mr Prince said that the 
number of stores opened had 
increased those trading at the 
end of the year to 135, *« H "g 
net selling area from 230,000 
sq ft to 315,000 sq ft. 

During the year the com- 
pany had expanded £4^4m in 
oxpansion and development. 

Recent expansion at the 
Nursling warehouse meant 
that there was a total capac- 
ity to serve at least 200 
stores. 


£250,000 payout to 
ex-Trimoco chief 


BY CLAY HARRIS 

Trimoco, the Luton-based 
motor dealer, has paid a golden 
handshake of £250,000 to Mr 
James Longcroft, who resigned 
as chairman earlier this year. Mr 
Longcroft’s three-year service 
contract provided for annual 
payments of £130,000. 

The exceptional payment lim- 
ited Trimoco’s interim pre-tax 
profits to 52m (£51,000). Turn- 
over in the six months to Sep- 
tember 30 increased to 5105.6m, 
a 10 per cent rise over the 
S96.2m reported in the compara- 
ble period. 

Although the first half 
included August and September, 
the traditional peak of new car 
registrations, Mr Roger Smith, 
chairman, said that business was 
continuing strong in the second 
half. 

Trimoco combines Ford fran- 
chises in Bedfordshire, Essex and 
Yorskhire and General Motors 
dealerships in East Anglia with 
related leasing, contract hire and 
property operations. The motor 
activities emerged from the for- 
mer Combined Technologies Cor- 
poration, a high-technology spi- 


noff 
indepem 
by Mr Lc 


of Tricentrol, the 
ident oil company headed 
by Mr Longcroft 

A net extraordinary credit of 
£140,000 reflected the release of 
a £200,000 provision relating to a 
subsidiary sold in 1985 less the 
560,000 cost of capital restruc- 
ture and change of tax domicile. 

An interim dividend of 0.4p 
(nil), on earnings per share of 
1.7p Qoss per share of O^p), fol- 
lows a special interim of 0.3p 
paid in July. 

The company last week 
bought sufficient dollars at 51.77 
to cover its 62.67m exposure to 
Sperry Corporations’s exercise of 
'put* options in Information 
Storage/Retrieval Systems, a 
company in which Trimoco stfll 
holds a 19 per cent stake. 

Trimoco last year took a 51.6m 
provision to cover the exposure, 
which it is contesting in the US 
courts. The sterling-dollar rate 
has subsequently moved in Tri- 
moco’s favour, and the company 
expects the margin to cover any 
interest costs which may be part 
of a settlement 


Further US 
expansion 
for Trinity 

Trinity International Hold- 
ings. the former Liverpool Daily 
Post and Echo, yesterday 
announced that contracts had 


pany ( 

Buckeye ir based in Lisbon, 
Ohio, some 8U miles from Trin- 
ity's existing Gateway Press pub- 
lishing ana printing operation 
centred in Pittsburgh, Pennsyl- 
vania. 

Hie considexatio.1, payable in 


cash, amounts to S3m (£ 1.72m). 

E lus another Sim for land and 
uildings not owned by Buckeye 
and Sl.S2m for non-competition 
and consultancy agreements 
negotiated with previous share- 
holders: 51.5m of the total sum is 
payable on completion, with the 
remainder payable over five to 
10 yean at a fixed interest rate 
of 7l5 per cent 

As at October, Buckeye had 
net assets of $1.3m and achieved 
adjusted pre-tax profits of 
$581,000 for the year to Decem- 
ber 1986. 


Connells in further expansion 


Agenta 

red Hallem 


of 


Connells Estate 

Luton has acquir 
Bracket Commercial Property 
Surveyors based in Nottingham 
and Derby for an initial consid- 
eration or $893,000 in shares and 


cash. 

A further S202,605 in Connells 
shares will be payable assuming 
Hallam’s net profits for the 
iod to December 1988 exceed 
,125.In the year to end-Octo- 


ber 1986, Hallam made pre-tax 
profits of 5186,882. 

The acquisition extends the 
market coverage further north 
up the Ml corridor of Connells 
Commercial Division. 


Unilever Results 


The Directors of Unilever announce the unaudited results forthe third quarter and first nine months of 1987,^ 

and the interim Ordinary dividends in respect ef 1987. 

UNILEVER COMBINED RESULTS ON AN HISTORICAL COST BASIS (£ millions) 

Third Quarter l®ne Months 

Increase 



1987 

1986 

4649 

4,188 

423 

308 

14 

7 

2 

6 

25 

46 

(64) 

(48) 

400 

319 

(173| 

(133) 

2 

5 

(10) 

. nd) • 

219 . 

181 

(12) 


207 

181 


11% TURNOVER 

37% OPERATING PROFIT 

Share of associated companies’ profit before taxation 
Other income from fixed investments 
Other I merest receivable and similar income 
Interest payable and similar charges 

25% . PROFIT BEFORE TAXATION 

Taxation on profit of the year 
Taxation adjust me nt s previous years 
t. . Outside interests 

f' • • • ■ . 

21% '• Profit attributable to shareholders 

Diffe re nce on translation of 1987 results at end September 
1987 rates of exchange 

14% PROFIT ATTRIBUTABLE TO SHAREHOLDERS 


1987 

1986 

13.739 

12,655 

1.191 

856 

32 

24 

6 

12 

80 

125 

(187) 

(152) 

1,122 

865 

(471) 

(365) 

4 

6 

- (33) 

(28) 

622 

478 

(31) 


591 

478 


Increase 


9% 

39% 


30% 


30% 


24% 


11.10p 


9.70p 


14% 


Combined earnings par share -par 5p of ordinary capital 


31.63p 


25.60p 


24% 


MTRODUCTION 

Encouraging volume growth. Improved margins and the effect of 
acquisitions produced increases in earnings per share and profit 
before taxation of 21 % and 25% respectively over the third quarter of 
1988 (at constant rates of exchange). 

Forthe first nine months of the year both earnings per share and profit 
before taxation were 30% ahead of the same period in 1986. 


1HRD QUARTER RESULTS 

At constant rates of exchange, operating profit was up by 37% overthe 
corresponding quarter of 1986 to £423 million. 


In Europe, operating profit was 21% above the third quarter of 1986. 
Frozen Products as well as Food and Drinks made particularly strong 
gains. 

Operating profit In North America more than doubled with significant 
contributions from Chesebrough-Pond's and Upton. 

Our businesses In the Rest of the World also performed wall, with very 
satisfactory results in Latin America.- 

The higher net interest c ost s as compared with 1986 are mainly due to 
the costs of financing the Chesebrough-Pond’s purchase. 

At end September exchange rates the increase in profit attributable is 
14% in sterling, 19% in guilders and 26% in dollars. 


SUPPLEMENTARY REGIONAL ^FORMATION 
(£ mfi&ons at end 1986 exchange rates) 

Third Quarter Nine Months 


1987 

1986 

Turnover 

1987 

1986 

2J598 

2,595 

Europe 

8£18 

•8,079 

994 

764 

North America 

2*69 

2.150 

957 

829 

Rest of the World 

2*52 

2*26 

4,649 

4,188 


13.739 

12.655 



Operating Profit 



231 

. 191 

Europe 

695 

540 

90 

35 

North America 

201 

64 

102 

82 

Rest of the World 

295 

252 

423 

308 


1,191 

856 


DIVIDENDS 

The Boards today declared interim dividends in respect of T987on the 
Ordinary capitals at the following rates which are equivalent in value at 
the rate of exchange applied in terms of the Equalisation Agreement 
between the two companies: 

PLC 

per5p Ordinary share— 3.54p (1986: 2.998p) 

N.V. 

per R. 4 Ordinary capital- FL1.09 (1986: Fl. 0932) 

The PLC interim dividend will be paid on 21st December, 1987 to 
shareholders registered on 4th December, 1987. 

The N.V. interim dividend will ba payable as from 22nd December, 1987. 

Forthe purpose of equalising PIC's and N.VTs dividends under the 
Equalisation Agreemem. the Advance Corporation Tax CACF) in respect 
of any dividend paid by PLC has to be treated as part of the dividend. 
PLC's 1987 interim dividend now announced has been calculated by 
reference to the current rate of ACT ( twenty -save n/saventy-thlrds); if 
the effective rate applicable to payment of the dividend is different the 
amount will be adjusted accordingly and a further announcement 
made. 

The amounts shown above in respect of 1986 have been adjusted to 
refleetthe sub-division ofshares on 29th June, 1987. 


NOTES 

Chaebreugh-Pomra Inc. 

The Chesebrough-Pond's Group was acquired on 30th December. 
1986 and 100% ownership was effected on 10th February. 1987. 
Those businesses which have been retained within Unilever are 
included In the 1987 results. The Impact has been to Increase 
turnover and operating profit above 1986 in thefirar nine months 
by 6% and 12% respectively. WS have not included the results 

nor interest on the acquisition price of those badnesses which 
ware identified for early disposal and have now been sold, 
realising gross proceeds of some ULS$2 billion. 

Accounting for Depredation oTbigbla Assets 
The effect of changes in the Group’s accounting for depredation 
Of tangible assets hes been to Increase operating profit in the first 
nine months 1987 by £50 million, 

Hafciy 

With effect from 1st January. 1987 the remits of ourTUrtlsh 
operations, reported in previous years within the Rest of the 



World, are Included In the European touts. Comparative figures 
for 1986 have been restated. 

Exchange Rates 

The results for 1387 and the comparative figures for 1988 have 
been translated at constant rates of exchange. These are based 
on £1 =R.3g3“U-S.$IA8, which were the ctoalng rates of 1988. 
In addition the profit attributable to shareholders for 1937 has 
been translated at the rates of exchange current at the end of 
September 1087 being based on £1 «FL 337= US- S1.63. 
Exceptions to these conventions hove been made for the results 
arising in 1987 in hyper4rfiatlonary economies, which have been 
translated throughout at forecast dosing rates for 1987. 

Dates 

The provisional results for the fourth quarter and for the year 
1987, and the proposed final dividends in respect of 1987, will be 
published on Tuesday- 1«t March. 1988. 


16th November, 1987 


Unilever Quarterly Results are reprinted in leaflet form. 

If you wish to be included in the mailing list forthese leaflets please write to: 
External Affairs Department P.O. Box 68, Unilever House, London EC4P 4BQ. 


Part of everyday life in 75 countries. 





li 











Financial Times Tuesday November 17 1987 


COMMODITIES AND AGRICULTURE 


Tropical Timber pact 
faces conservation call 


BY DENNIS THOMPSON 

THE WORLD Wildlife Fund is 

calling on the world’s tropical 
timber-producing and consuming 
nations to establish a code of 
conduct to control the harvest- 
ing of endangered species of 
tropical trees. 

The call Is being made as the 
council of the International 
Tropical Timber Agreement 
(ITT A) meets this week at the 
newly-formed body's headquar- 
ters m Yokohama, Japan. The 
meeting, under the chairmanship 
of Mr Freezailah bin Che Yearn, 
the ITTA’s executive director, 
began yesterday and ends Fri- 
day. 

The WWF wants the ITT A, a 
newcomer among world com- 
modity agreements (it was set up 
in early 1986 under the a u spi c es 
of the UN Committee on Trade 
and Development), to press 
member nations to identify 


engangered tree species, to 
demarcate threatened forest 
areas and to establish tariffs 
inhil 

ber 

creating projects 
processing industry. 

Mr Peter Kramer, the WWFs 
conservation director, told the 
meeting that 1,200 tree species 
ate endangered and that 160 spe- 
cies of wildlife are dependent on 
Mrh tope of tropical tree. Japan 
was singled out for criticism 
because of the heavy demands it 
makes on such supplier nations 
as Indonesia for quality timber 
used for such low-grade purposes 
as chipboard production. 

Japan is the world’s largest 
importer of tropical timber, with 
imports valued at more than 
SRSbn a year, with the US and 


the European Community close 

behind. 

A key agenda item at the con- 
ference is the need to raise 
administrative contributions 
from 41 member governments to 
support work of the timber 
organisation. The ITTA hopes 
the Common Fund wfll allocate 
J20m-$30m to preservation of 
tropical timber once Unctad's 
common fund agreement is rati- 
fied by the Soviet Union. Japan 
has allocated S2m, with Switzer- 
land and the Netherlands contri- 
buting Sim and S6OO.0OO respeo 
tively. Among 

non-Governmental organisations, 
the WWF has contributed 
$10,000. The US has not vet paid 
its administration contribution. 
Timber companies, whose traded 
is worth between S5bn and SSbnJ 
so far have made no contzibu-1 
tian, officials point out. 


New York exchange approves 
framework plan for merger 


BY DEBORAH HARGREAVES M CHICAGO 

Commodity cost savings of around t3m 


THE NEW York 
Exchange's Board has paved the 
way for a merger with the New 
York Mercantile Exchange by 
approving the framework out- 
lined by an Arthur D. Little man- 
agement study. 

The study, which advocates an 
administrative tie-up as a first 
step towards a full merger, will 
be put to the Nymex Board by 
the end of the month. The two 
major New York exchanges have 
been discussing a merger for 
most of the year in an effort to 
save money and space in t h e ir 
overcrowded World Trade Center 
headquarters. Combining admin- 
istration and non-operative func- 
tions such as compliance and 
marketing is projected to lead to 


year. 

However, the two exchanges* 
clearing and back office systems 
would remain' separate, as would 
trading in existing contracts far 
the first few years. New con- 
tracts and products developed 
jointly in future would be open 
to members of both exchanges. 

The two exchanges, which 
have many common members, 
handle between thou an average 
of some 185,000 contracts a day 
or around 46m contracts a year. 

Since a merger last came up 
for discussion between the two - 
in the late 1970s - Nymex's 
energy futures and options con- 
tracts have flourished, while 
ess has 


Comex's metals business 


lost 


some of its shine. Last time, 
Comex members vetoed a part- 
nership in order to keep their 
buster markets from Nymex 
members. This time the Nymex 
members are more territorial. 

But Mr Bill Bradt, Nymex 
chairman stresses: “We are 
looking at it from a dollars and 
cents issue and not from any old 
animosity." 

Members are expected to vote 
on the merger early next year in 
what could herald a closer rela- 
tionship between all five New 
York futures exchanges. The Cof- 
fee, Sugar and Cocoa. New York 
Cotton Exchange and New York 
Futures Exchange are all looking 
at the study with a view to possi- 
bly joining the big two. 


Zimbabwe 
hopes for 
tobacco 
boost 

By Tony Hawkins In Harm 

ZIMBABWE'S badly bruised 
tobacco industry is hoping for a 
strong rebound in 1988 following 
a devastating 20 per cent tell in 
the value of production thi* 
year. 

A year ago, the industry 
embarked on an ambitious 
expansion scheme designed to 
■raise output to around 135m 
kilograms from 114m in 1986-86. 
Tobacco thrives in dry condi- 
tions and growers came dose to 
meeting the crop target, produc- 
ing an estimated 132m kgs. But 
so severe was the drought that 
leaf quality was poor, resulting 
in sharply lower {Rices on the 
Harare auction floors. 

As a result the avenge 
price phunetted SO per cent from 
313 Zimbabwe cents (186 US 
cents) to 218 cents a leg. Despite 
this, only 50 or 60 g rower s are 
expected to be forced out of pro- 
duction, and industry leaders are 
confident that it will be possible 
to maintain output at 180m kgs 
in 1988. 

But they warn that many 
growers are carrying large losses 
and have been temporarily res- 
cued by banks. It is estimated 
that 60 per cent of growers aver- 
aged less than production costs 
and will therefore need substan- 
tially higher prices in 1988 to 
recoup their losses. 

Merchants argue that given 
reasonable rains and a return to 
quality leaf, prices should aver- 
e at least 280 cents a ! 

58, but even this will fall 
of 1986 prices. 


Redeploying redundant farmland 


THE BRITISH Government’s 
belief that there should be a 
revival of rurally-based Industry 
to compensate for reducing farm 
production is, I am 'sure, mis- 
taken. 

There are two separate issues. 
Firstly, is ft sensible to try and 
locate m the countryside indus- 
tries which are much better 
suited to urban or semi-urban 
areas and which have no possi- 
ble link with fanning? Secondly, 
would it not be better to recog- 
nise that the countryside has 
been constancy evolving to meet 
changing economic and social 


FARMER'S 
VIEWP0I 

By John Cherringten 




Aluminium standard -7*26 to 48775 
AlumHum high grade +8S0 to 47,500 
Copper 44*00 to 64*00 

42*75 to 18.826 
Nick* -330 to 9Vta 

23nc -3S0 to 

-nn -20 to 19*10 


ahwrtasi. -82*00 to 19*74*00 


Israeli flower growers worried about EC access 


BY JUDITH WALTZ IN JERUSALEM 


Israel's flower growers are 
increasingly concerned that 
delays in ratifying their draft 
agricultural access agreement 
with the European Community 
will severely harm their competi- 
tivity of their exports to that 
crucial market. 

The agreement, reached in 
principle in March 1986, calls. for. 
the progressive abolition of tariff 
barriers for Spanish produce to 
be matched for IsraeL Duties on 
Spanish flowers have already 
been reduced in recent weeks 
from 17 percent, the rate cur- 
rently paid by Israel, to 12J» per- 
cent They are to be totally abol- 
ished by January 1988. 

Mr Hillel Mints, chairman of 
the state run Flower Marketing 
Board, expressed the hope that 
the Israeli government and the 
EC would soon finalise the 


remaining details of the agree- delays in applying the agreement agreement before its formal rati 
ment. "Our farmers are very with the EC "our oompetitivity fi cation so that farmers woulc 
worried about not having this will suffer and that will affect 

future production " 

He attributed the holdup in its 
ratification to differences over 


agreement put into practice" he 
said, "since we now find our 
dtion inferior to that of the 


Israeli cut flowers, which 
account for a 45 percent share of 
the EC winter flower market, 
have -over-the-past- few -years- 
become a major source of agri- 
cultural export revenues far the 
country. Last year, a record 900 
million cut flowers were sold 
overseas, earning Israeli tenners 
some US $115 million. Mare fol- 
lows she has to move her 
car.1243 end end 
Add to Flour growths 
Mr. Mintz predicted only mar- 
ginal increases in these figures in 
the current season but he said 
that as a result of continued 


would 

not be as hard hit in the market- 
started. 

atmosphere 
prevailed between Mr. 
Cheysson end the Israeli authori- 
ties will hasten this process " 
remarked the Flour Board Chief. 


1IUL uc do IUUU lUb Ui < 

Ingseason just started 
*We hope the good . 
which prevailed be 


the con trav er sal issue of direct 
agricultural exports, from the 
Israeli occupied territories, to the 
EC. Israel has persistently 
refused- to-fUow Palestinians - 
fanners to use its ports, insisting 
that they ship their produce 
either through the state run mar- 
keting organisations, or from the. 
ports of neighbouring Arab coun- 
tries. 

During a visit here last month, 

Mr Claude Cheysson the Euro- CLOSING PRICES from the Lan- 
pean Community's external rela- don soyabean meal futures mar- 
tions Commissioner, tried to gain ket were not available yesterday 
concessions out of the Israelies b eca uy of a computer fault Hie 
on the subject bv offering to prices shown in the table below I 
apply the agricultural access are as at 12 noon. I 


On my own Hampshire term 
the boundaries of bon Age fields 
remain clearly visible, and in 
some of the woods there are stfll 
ditches marking the locations of 
farmsteads abandoned centuries 
ago. I have no documentary evi- 
dence concerning the history of 
my own land, but I did reoently 
come across an account covering 
several centuries In the develop- 
ment of a Devon estate. 

The picture a ppe a rs to have 
tanged several tunes - starting 
with a treeless arable field 
tem, then to wooded small 
and then back' to arable i 
The big. double hedges far which 
Devon was noted were a late 
developement and mainly 
planted to provide timber for 
building ana repairs. I had a 
Devon term myself some years 
ago and removed a number of 
hedges to make the fields more 
convenient for arable fanning 
again. 

On my present term there are 
a number of copses which were 
planted in the early 19th Century 
with hazel oak and beech. The 
hazel was used for sheep hurdles, 
thatching wood and bakery fad, 
the bigger trees for building. 

The point is that all these 
changes were sparked off by a 
positive demand which had to be 


satisfied. Even 50 years ago there 
was a good sale tor hurdles, a 
great deal of thatch and most 
country bakeries (there was one 
in every village) were fired by 
hazel faggots. At that time we 
were just emerging from the 
horse age and every village had a 
blacksmith and wheelwright 
Home-drawn transport was too 
slow for day to 
conducted been 
and local towns so rurally 
activities were viable ana village 
shops, bnikters and undertaken 
performed their neccessary 
tasks. 

I am making these points 
because it seems to me that the 
Government’s latest ideas, if I 
follow them correctly, offer no 
real reason for establishing any 
sort of industry in the country- 
side which cannot be much more 
efficiently conducted in an 
urban environment. There is no 
point in trying to establish an 
enterprise in a village when most 
of the villages are becoming dor- 
mitories for the local towns or 
providing weekend homes for 
the better off. 

Before the Second World War 
the rural population was made 
up largely of rural workera. But 
most have been forced to leave - 
in search of work and, much 
more importantly, housing. The 
cheap bouses which used to 
abound have been bought up 
and reconditioned to sell at 
many times the figure which 
Iby s 

working people. 



could be afforded by younger 
What would oe 


the point of starting a rural 
enterprise if all the workers had 
to drive out of town to get to the 
job. 

Nor does it seem to be realised 
just how restrictive the planning 
rules are becoming. These pres- 
ent formidable obstacles _ to 
developement, and it is not just 
the planners who are to blame. It 
.. ... — ' new Brit- 

that Once 
of Ids 

choice he does not wish to be 
joined by any of his fellows even 

for residential purposes. So plans . . . , 

for new bouses have to be fought cheap accomodation in pi; 
through to appeal, however suit- where people wanted it. The: 
able toe average outsider would 
think them. 

So restri c tiv e is the planning 
system that there is a scarcity of 
housing shea which pushes their 
price up to more than half the 
value or the house to be built on 
the plot. When the Government 
first announced this last Febru- 
ary I told a friend who was for- 
tunate enough to own some land 
with planning consent that I pro- 
posed to put in for planning coo- 
sent on some odd pieces of land I 
owned and thought they should 
qualify to compensate me for the 
tell in my fanning income. He 
was horrified. There were 
tew hundred houses allowed 
in the next 10 years he told me 
and if 1 put in for and was suc- 
cessful for a score or so, as I am 
intending, it could break the 
market. 

There is plenty of room for 
some competition hare when you 


consider that agricultural land is 
selling for about 51,500 an acre 
but with the magic of planning 
consent is worth about 20 times 
that 

When it comes to installing 
some form of industry not only 
is the battle with the planners 
but with the new country people 
as welt The last thing they wish 
to see is any sort of commercial 
development in their village. 
There was even a case where a 
man making spinets in his 
gam g ». surely one of the least 
offensive of occupations, was 
told he should move to an indus- 
trial estate. 

I would be the first to admit 
that, at the end of the last war, i 
supported planning with great 
enthusiasm as a counter to the 
ribbon development and other 
ills which the countryside had 
suffered in the inter-war years. 
But it must be said (hat toe sys- 
tem then provided for a lot of 
‘aces 

_ re is 

something to be said for the 
principle that in a free country 
there is no reason why a man 
should not be able to erect a 
house wherever he wishes on his 
own land. 

Even if it were possible to 
eliminate, by some miracle, both 
the planners and the vested 
interests which benefit from 
them I doubt very much that an 
alternative form of income could 
be provided to compensate for 
the elimination from production 
of some 2m acres of the more 
fertile Land in the country. 

There is a precedent for this. 
During the inter-war period, 
when .unplanned development 
was the order of the day, only a 
tiny proportion of the land area 
m tact bull 


built upon. Rurally- 
based industries were shrinking 
test and; huge areas of land were 
lying derelict, waiting for new 
terming demand to emerge. 


Bauxite price caution urged 


BY CANUTE JAMES Bf KINGSTON 


The International Bauxite Asso- 
ciation has advised its ten mem- 
bers to sell hwivH» and alumina 
next year at prices similar to 
those which they asked this 
year. 

The recommendation was 
made by the IBA’a ministerial 
co n noil at its annual meeting at 
the association's headquarters 
here, which was attended by rep- 


Soyabean meal 


resen tatives of the ten 
Australia, Guinea, Jamaica, Indo- 
nesia, India, Yugoslavia, 

Sierra Leone, Suriname and Guy- 
ana. 

The producers* organisation 
recommended to the members 
that for next year they sdi base- 
grade metallurgical, bauxite 
Between 2-5 per cent and &5 per 

cent of the composi te re ference ' and were not biding as the 1BA 
p rice per tonne of primary alo- was not a .cartel' ana 

It also suggested that prices 
next year for alumina (alumin- 
ium oxide) should be between 14 
per cent and 18 per cent of the 
composite reference price per 
tonne of primary aluminium 
ingot 

The IBA pointed out that these 
are recommended minimum 
Insurance and freight 


prices. They are the same as 
those which were recommended 
for bauxite and alumina sales 
made this year. 

"These prices should be negoti- 
ated on the basis of the areas to 
which these products are to be 
delivered and the means of tran- 
sporatian," the association said 
after the meeting. 

Officials in the IBA’s secretar- 
iat explained that the composite 
reference price is determined by 
a formula which takes account 
of short term and long term 
prices of aluminium in m^jor 
markets such as north 
western europe and asia. 

They also stressed that the rec- 
ommended prices were meant as 
a guide, for the IBA’s members^ 
ana were not binding i 
was not a .cartel arid could not 
set prices. ' 

The association's members 
account for about 73 per cent of 
the world's output of bauxite 
ore, and 43 per cent of alumina 
production. 

The IBA said after the meeting 
here that. In light of a tightening 
market this year and falling 
stock levels, “the outlook for the 
bauxlte/alumina/aluminlum 


industry for the remainder of 
1987. and possibly 1988, shows 
significant signs of improve- 
ment.’ 

The sta tem ent also indicated 


some concern within the associa- 
tion about recent developments 
in international stock markets, 
and “the passible effects af these 
on the performance of the intm<- 
nationai economy and individual 
aluminium companies.” 

Mr Henry O- Bovell of Guyana, 
who has been secretary general 
of the IBA since 1984, is to be 
replaced in January, by Mr Ibra- 
hima Bah of Guinea, who will 
serve a three-year term. 


Dry weather 
hits 1 Kenyan 
maize crop 

THE KENYAN maize harvest 
will fall by 30 per cent to 2m 
tonnes in 1987 from an annual 
average of 2.7m because of 
below-average rainfall in the 
maize growing areas, according 
to Mr Elijah Mwangale, the Agri- 
culture Minister, reports Sew* 
ter flrom Nairobi. But the coun- 
try has taffioent food reserves, 
he added 

"The country expects a poor 
harvest df die staple maize mom 
these areas _ The long rains 
which began in April ended in 
June instead of August,” Mr 
Mwangale, explained. 


Copper to continue strong 


CHILE’S MINES Minister. Mr 
Samuel Lira is predicting contin- 
ued strong international copper 
prices^ but says Chile will not 
alter its production plans until 
prices stabilise, Heater reports 
from Santiago. 

“We expect tint between now 
and next June the price will 
remain above 90 cents per lb," he 
said in an interview. The fact 
that copper for future delivery 


was being forecast at above the 
90 cents level was an indication - 
of market expectations. 

Chile wmid hold to its output 
plan despite the surge which saw 
the price r is* to more than $1.20 
per lb last week, nearly double 
the level at toe beginning of the 
year. Chile's output will rise by 
around 60,000 tonnes from the 
1.4m tonnes expected this year. 


t 


WORLD COMMODITIES PRICES 


LONDON MARKETS 

THE ZINC market was a leaefing feature 
on the London metal exchange again 
yesterday when the cash petition added 
£23 to Friday's E20 advance to reach 
£522 a' tonne. Tightness of physical 
supplies available for nearby delivery 
remained the dominant Influence. News 
of a $50 rise in European producer 
prices was also bullish, dealers said, 
although this had been predicted last 
week. In the face of such upward 
pressure the market shrugged off the 
bearish Implications of a decision by 
workers at Spain's Austuriana to can off 
a threatened strike. As prices moved 
higher invesment fund buying and 
short-covering was triggered, but trade 
selNrto and profit-taking emerged near 
the dose. The firmness of the dollar 
against sterling provided a firm 
background In a* the LME markets, 
notably copper, which saw cash Grade A 
metal gain £19.50 to £1,455 a tonne. 


SPOT MARKETS 

Crude oN (per barrel FOB December) 

+ or- 

Dubai 

818^5-16*0-0*8 

Brent Bend 

$17*1-18*6-817 

W.TJ. (1 pm adQ 

$18*8-1871 -820 

Off products (NWE prompt dadwey per tome CIF 

ovpwnoif/ 


♦ or- 

Premium QasoBna 

182-184 


Gas OB 

162-163 

-1.00 

Heavy Fuel OB 

88-87 

-3.00 

Neptune 

154-157 

-1*0 

Petrataum Arpw Entaatae 



Other 


+ or- 

Gold (per trey 02>4 

*482.00 

-825 

SUver [per troy ozj* 

376.45p 

-4*0 

Platinum (per troy ox) 

*438.00 

-0.75 

Pafladhim (per troy oz) 

$11850 

-2.00 


AlcmJniixn (free market} SI 670 

Copper (US Producer) 1 1325c 4*25 

Load (US Producer) 42.00c 
Mdm (free maim} 273c +3 

Tin (European tree market) £4010 
Tin (Kuala Umipw marital) 17*5r -0.10 

Tin (New Yorit) 324 SOc -020 

Zinc (Eure. Prod. Price] 5820 
Zinc (US Prime Western) $43*75 


FteKWr Funmo e/kidBX potat 

IjONDON BULLION MARKET 

1 

L4MBON HETAL EXCHANQE TRADED OPTIOMt 


Ctose 

Prevkxw 

HWLow 

Gold (fine oz) $ price 

£ equivalent 

AtamMem (997%) 

eras Puts 

Jan 

Apr 

Jy 

1178* 

1202* 

1105* 1180* 
1216* 1180* 
1092* 1080* 

Ckwo 461V-40214 265288% 

Os.fUo 


1080.0 

1103* 

Opening 480%-481 

Morning Ot 481*. 
Afternoon fix 482 

265*584* 

JM—tak— (99J%) eras Puts 

BH 

1155* 

1163* 

1186* 

285 


Strike price $ tonne Jan Mar Jen Mar 







1600 

1650 

87V* 

87 

Turnover 356(290} 


oaysiow 4a>48D« 



GRAMS 2/tonne 



Coin* 5 price * 

£equfvtaant 



Wheat 

Ctoes 

ftevtous 

H0I/LOW 

USEe0a 475-450 

272VM78 

Copper (Grade A} 

Cafc Puts 

NO* 

112*6 

111*0 

112*5 112*0 

Knmerrsnd 48l\M64Ki 204fe*66* 

Strike price S tonne Jen Mar Jan Mar 

Jan 

Mar 

114*5 

117*5 

119.15 

122.15 
102*5 

113*0 

115*0 

117.75 

120*5 

102.70 

115*0 114*6 
117*5 116*0 
118.10 116.15 

1/2 Krug 239-248 

1/4 Krug 118-126 

Angel 472-477 

i/io Angel 47-52 

New Sow. 106 Vi-1 OB V 

13855-141 V4 

67H-72 

209*2721* 

2050 

2200 

184 

123 

& 

10226 

62tt-63 


Cupper (Grade A) 

Case Puts 

Nov 

104*5 

10440 


Old Sow. 108VM10 

Britannia 475-480 

Noble Pta! 502512 

82K-63K 

2725*278 

23754-283 

Softs price £ tonne Jan Mar Jan Mar 

■ffriey 

C»oee 

ftevtous 

MptyUMf 

1250 

42 

NO* 

106*0 

108*0 

110*5 

106.10 

107*0 

109*0 

105*0 106*0 






Mar 

110.15 109*5 

LONDON METAL EXCHANOS 


(Prices auppBed by Amalgamated Metal Trading) 

May 

Sep 

Nov 

112.10 

111 A0 

112.10 111*0 

Oou 

Previous 

Mgh/Low 

AM Official 

Kerb ctaea Open kitaraet 

101.00 

101.00 


Aluminium. Bfi.7% purity ($ per tonne) 



Ring turnover 0 tonne 

Turnover: Wheat 424 (574), Beriay 228 (427). 
lota of 100 tomes- 

Cash 1700-10 

3 monte 1660-70 

1650-70 

102555 

1645/1625 

168050 

1625-35 

unqoutod 2*48 lota 





AluniMuB*a*% putty (£ per toms) 



Ring turnover 19*75 tome 

SUGAR (8 per tonne) 


Cash 867-9 

9302 

953/933 

937/907 

9525 


Haw 

does 

Prouloua 

High/Low 






168*0 


168*0 166*0 
17340 17140 
173*0 171*0 
173.40 17240 
17440173*0 

Copper, Grade A (£ per tome) 



Ring tamousr 45,700 tome 

Mar 

May 

Aufl 

Oct 

171*0 

172*0 

173*0 

173*0 

173*0 

174*0 

Cash 145050 

3 monte 1217* 

1435-6 

11855. 

1475/1425 

1223/1190 

145050 

1213-4 

12125 86*89 lots 

173*0 

Copper, Standard (£ par tome) 



Ring turnover 25 tome 

Dec 

Mar 

177*0 

182*0 

176*0 

182*0 

175*0 175*0 

Cash 138050 

3 monte 1200-10 

1290500 

1194-6 


1X50-80 . 
1200-10 

40 lota 

WMs 

dose 

ftevtous 

High /Low 

S»ver (US canta/fine ounce) 



Htag turnover 0 aim. 

Dec 

Mar 

21200 

201*0 

187.00 

g03,M 

212*0 21200 
203.00 201*0 

Cash 662-5 

3 monte 674-7 

6685 

67051 


651-4 

6835 

87750 589 tots 


210.00 

211*0 

21 1.30 210^0 

Lead (E per tonne) 




Ring turnover 15*75 tonne 

Oct 

Dee 

211.00 

212*0 

212.00 

213*0 

219*0 

211*0 211*0 
212*0 

Cash 3605 

3 months 3485 

3575 

3305 

381/360* 

352/340 

3605-1* 

34225 

348-7 12*87 tote 

**«y 

225*0 


Mcfeai (£ per tome) 




Rtog tomorar 1.194 tome 





Cash 333040 

32505 


333050 


Ttemver. Raw 1360 (238(9 lota ol 50 tomes. 
Whits 11 48 (832) . 

P»fa- White (FFr per tomaKMer 1170. May 1198. 
Aug 1238, OCM238. Deo 1248 Mar 1268 

3 months 331025 

32302 

3330/3316 

3310-6 

33105 8*91 tab 

Zinc (E per tonne) 

Cash 5215 

3 months 5065 

498500 

497*5 

520/518 

612/501 

6175 

500-11 

Rtog esnorar 18*60 tome 

8002 16*88 lota 

co erass/tomo . 


Cattle (ttra wBighth 

Sheep (deed weightjr 
P&flirawaigttft- 

9941p 

18629p 

75*8p 

-0*7* 

-1053* 

■002* 

London daBy sugar (raw) $191-80* 
London datiy euger(wNta) $im*Qw 
T aw end Lyte export price E216*0 

*0*0 

♦1*0 

Barley (EngEoh Feed) 

Maize (US No. 3 yeflow) 
Wheat (US Dark Northern) 

£115*fis 

£131*5 

£9D*0y 

4-7*5 

40*5 

Rubber (spot)* 

Rubber (SepQf 

Rubber (Oct) f 

Rubber (KLRSS Not) 

63*0p 

6S.00p 

65.D0P 

26950m 

4150 

+1*0 

+1*0 

Coconut on (PhUlppIneeH 
Palm OJJjMNaysanlfi 
Copra (PHIpp(nBB)$ 
Soyabeans (US) 

Cotton "A" index 

Woaftops (64« Super) 

$473.00* 

$370.00* 

$320*0y 

$142-00 

77.10c 

480p 

43*0 

+1*5 


US MARKETS 

in quiet trading, gold and sDver eased on 
a combination of trade and local sating, 
reports Draxaf Burnham Lambert 
Short-covering Me In the day pared 
losses. Platinum also eased on 
commission house sefflng In fine with 
gold, but derived some support from 
traders buying the market against gold. 
Copper eased, espedaBy In the 
December contract, es traders liquidated 
positions. Trade sating eased crude aS 
in the face of commission house buying. 
Activity was noted In tha December/ 
January switch which narrowed sSghtiy 
on December seSng. The product 
fo Bowed the crude oB on fund 

seHng, but the trade was a noted buyer. 
Coffee relied on speculative 

ted price-fix buying 
_ . to advance of the 

first notice day on the December 
contract Cocoa fei on speculative 
long-ftquidation, but industry interest was 
noted at toe Iowa. Sugar was quiet, 
easing on commission house seSng. 
Cotton eased on a combination of trade 
and commission house 

The meats dosed mixed 
In light volume oo 
to yesterday's crop report 
featured in soyameaL 

New York 

GOLD 100 troy oz^t/troyoz” 


’COWH *C" 37j500te: centa/tos 

Close Previous H&i/Low 



Close 

Previous 

HWLow 


4635 

4645 

0 0 


4645 

4865 

465* 4815 

Jen 

487* 

468* 

0 0 

Feb 

470* 

4715 

470*467* 


475* 

4772 

4782 4725 

Jim 

4815 

482* 

482* 479* 

Aug 

4875 

4885 

486* 488* 

ORANGE JUKZ 15*00 


Ctoaa 

Provtoua 

HW/LOW 



Ctose 

Previous High/Low 

NOV 

1249 

1245 

1255 1245 

Jen 

1270 

1277 

1290 1270 

Mar 

1805 

1299 

1313 1300 

May 

1830 

1327 

1338 1330 


1355 

1345 

1388 1350 

Sep 

1375 

1375 

1374 1374 

Nov 

1395 

1400 

1395 1396 


POTATOES £/»one 


£atonrauN9Materwk»4W*lp-p«flca/i(g. 
c-een tsfb. r-ringgK/ko. w-0«c/J*n. e-Jan. 
x-Nov/Dety-Oec. i-Jen/Feb. t Moat Cdmmbaion 
average tatatoefc prices. ■ change (mm a weak 
Rfio. f London physical market. 5 OF Rotterdam. 
* Sultan nwkataoae.il 
canta/fcg 


ICO tadtoter prices (US o ante per pound} ** 
November IS rCemp. dtfly 115.12 (115.72]. 15 
day average 113*4(113*$. 


COCOA E/tome 



Ctoaa 

Previous 

ttigb/Law 

Feb 

1005 

102* 


Mar 

BBK 

92* 


Apr 

150* 

155* 

152* 148* 

May 

142* 

157* 

1425 

Nov 

78* 

75* 


Fab 

90* 

1885 



GASOIL Xftome 


turnover 749 (773 ) ksta at 100 tomes. 



dose 

Prevtoue 

High/Low 

Dee 

18225 

183*0 

163*0 161*0 

Jan 

181*8 

161.75 

16150160*5 

Feb 

1S9J5 

159.75 

159.75 15BJS 

Mar 

155*5 

19650 

15550 156*6 


Mar 

& 

Nov 

Jan 

Mar 


183*0 160*0 
168*5 157*5 

158*0 164*0 
15570 164*0 
155*0 154*0 
155*0 104.10 

152*5 161*5 
151*0 151*5 
151.40 151*5 


168*0 182*0 
182*0 158.75 
167*0 155*5 
16570154*0 
155*0155*0 
158*0 154*0 
0 0 
0 0 . 

0 O 


COCOA lOfcxmee&tonnes 


SOYABEAN MEAL £/toms 



dOM 

Piteous 

ttigh/Low 

Dae 

1091 

1100 

1062 1088 

Mar 

1121 

1131 

1128 1119 

May 

1140 

1151 

1146 11® 

*Y 

1161 

1171 

1188 1160 

Sep 

1180 

1190 

11® 1180 


1206 

1215 

1210 1205 

Mar 

1230 

1238 

1234 1230 



Noon 

Piteous 

HIjtfLaw 

Dsc 

142*0 

140*0 


Feb 

142*0 

140*0 


Apr 

13950 

138*0 

139.00 

Jun 

131*0 

130*0 


Aug 

129*0 

128*0 


Oet 

130*0 

128.00 


Dae 

131*0 

12850 


Tienowr 218 {308} Ms oMOO tonma. 


Stiver fix p/fine or 

- US atsequlv 


Turnover 2286 (3800} iota of 100 tonnes 


. m-Maieyalan/9ngapare 


Turnover 2289 (4806) tore ol 10 Barnes 
ICCO indicator prices (SDRs per tonne). Date 
price lor Noranter.l3: 142878 (14267m .10 d» 
orange tor Nomnter Ik 14337* p 43374) . 


Spot 37846 

3 monte 384*0 

6 monte 3 83 * 0 

12 monte 410*0 


65575 

887.B0 

880.10 

707.10 


TEA 

21,218 packages wo" on attar at tho London 
auction, hdudno 2*00 Offexn padtages. 
reports the Tea Broker*' As s oc iati o n , dustily 
Assam and madhra* met Improved demand 
and often adv a n ce d Out plainer aorta stayed 
weak. Best tiquoring But Africans ware again 
dearer, as were l ete rteri meeflums but duds 
were fmagutar. Control Africans were needy 
ana cotouryBnae e oma dmaa dearer. Offshore 
tea met talr support but msdtom Kemaa 
wen *-3p lower. Quotations quel I80p a 
(167p£ mad 106p (1044-' kw mad 83p 


Dec 

126*5 

12558 

127*5 124*1 

Mar 

131.19 

130*0 

13150 129*0 

May 

133*0 

132*0 

133*5 131*7 

Jty 

13450 

13350 

135*0 133*0 

Sep 

137*0 

135*5 

134.7518450 

Dec 

18750 

13655 

0 0 

Mar 

136*0 

186*0 

0 0 

COPPER 25*00 toe; cams/te 


Ctose 

Piwbis 

WQNLOW 

Nov 

10055 

104*5 

10250 

Dec 

9830 

10250 

10240 

Jan 

96*0 

88*0 

0 

Mar 

9150 

8150 

9250 

May 

86*0 

88.10 

37*0- 

J*y 

84.70 

84.80 

8555 

Sup 

8450 

84*0 

0 

Dec 

84*0 

83*0 

84*6 

Jan 

8420 

83*5 

0 

Mar 

84*0 

8370 

8370 

PLA7MUM 50 troy on $/lroy ot 


Ctose 

Previous 

Wflh/Uaw 

Nov 

504.8 

483* 

8085 488* 

Dec 

507* 

4965 

0 0 

Jan 

509* 

407* 

517* 4875 

Apr 

517* 

505* 

523*486* 

■My 

5750 

513* 

527* 606* 

Oct 

533* 

5215 

518*5125 

Jan 

5415 

530* 

0 0 

fDLVEB 5*00 troy oz: esnte/troy oa=- 


does 

Previous 

wgh/Low 

Nov 

981.7 

672* 

0 0 

Deo 

6885 

674* 

esas 857* 

Jan 

86M 

678* 

0 0 

Mar 

6772 

6875 

682*672* 

May 

688* 

688* 

892* 680* 

Jfy 

694* 

705.7 

700* 634* 

Sep 

704* 

715* 

708* 708* 

Dec 

718* 

730* 

724.0 717* 

Jan 

7235 

7345 

0 0 


SUGAR WORLD Ml* 1 12*00 te; centa/te 
Ctose Previous Mgh/Low 


Jan 

7.14 

7*5 

0 0 

Mar 

751 

7.71 

7.71 750 

htay 

753 

7.74 

7.72 752 


755 

775 

7.72 7.65 

Oct 

774 

752 

750 773 

Jan 

753 

7*8 

0 O 

Mar 

7*9 

856 

o 6 


cotton 80*00; cema/te 



Ctose 

ftteoua 

t«gty!*"r 

Deo 

1778 

1808 

1803 1775 

Mar 

1788 

1832 

1824 1794 

May 

1826 

1883 

1880 1820 

Jfy 

1854 

1890 

I860 1880 

Sep 

1685 

1823 

1906 1833 

Dae 

1830 

1968 

1945 1836 

Mar 

1960 

1996 

IRS 1975 


Dec 

Mar 

May 

£y 

Oct 

Deo 

Mar 


Ooae Previous Wgti/Uw 


8887 69*4 

71.19 71.18 

72*0 71*0 

72*0 - 71*0 
66*0 67*0 

6530 0650 

6840 65*0 


7819 6805 
71*5 70*0 
72*0 71*0 
72*0 71*0 
BftQn napq 
85*084*0 
68*0 66*0 


HEATMU OIL 42.000 US gene, cwmjgjar 
ftwdom Hah/Law 


Chicago 


SOYABEAN OIL 80*00 Bis, catta/to 


Ooee 

Piteous 

M($!/Low 

Dec 

17.72 

17.72 

0 1755 

Jan 

1757 

1758 

0 1755 

Mar 

18*2 

18*1 

18*3 18.12 

“fr- 

1853 

1854 

1B551&40 

Jly 

1875 

1850 

1853 13.70 

Aug 

16*0 

1657 

18*01655 


19*0 

18*7 

1950 18.90 

Oct 

19*0 

1955 

01950 

Dae 

19*5 

19.12 

1911018*5 

SOYABEAN MEAL 100 tons; $/ton 


Ctose 

Piteous 

H&YLow 

Dee 

2005 

202.7 

201*1995 

Jan 

1925 

1947 

0191* 

Mar 

1845 

187* 

01845 

w-y 

179* 

181* 

1605 1785 

fy 

176.0 

1777 ' 

177*177* 


175* 

1767 

1785 1755 

Sep 

‘175* 

177* 

17651745 

ocr 

1745 

1785 

1785 1745 

Dec 

174* 

175* 

1755 174* 


WHEAT 5*00 bu min: eena/SOSMauahet 



Ctoaa 

Prevtoue 

High/Low 

Deo 

Mar 

£ 

Dec 

287/4 

298/6 

298/4 

287/0 

293/0 

802/0 

285/4 

297/8 

298/0 

285/0 

289/0 

298/D 

318/0 288/0 

299/0 295/0 

2S8/6 295/4 

0 289/0 

302/0 297/4 


LIVE HOPS 30*00 tecwiWte 


Close Previous 


Dee 

4357 

4350 

4357 43*0 

ft 

Feb 

42.65 

42*7 

4272 42*5 


*5* 

39*5 

38*7 

39*5 39.00 

.»■ 

Jun 

42*0 

42.12 

42.45 42*3 



42.40 

42*0 

42.75 4240 

* 

as 

41*7 

41*0 

4155 41*7 


Oct 

38.65 

3852 

3850 3855 


Dee 

3956 

3940 

3940 3955 



MAIZE 5*00 tai mta; centa/teB> buatiel 



Cion 

Piteous 

HfgtyLbw 

Dec 

Mar 

May 

*Y 

Sop 

Dec 

Mar. 

18^/S 

190/0 

196/D 

198/4 

195/4 

194/8 

200/4 

182/4 

188/8 

» 

196/2 

194/4 

200/4 

ism 

tali 


PORK BBJUE 3 38*00 te;centa/ai 



Ctose 

Prevtoue 

High/Low 

Feb 

5557 

5852 

5650 5552 

Mar 

56.15 

55*5 

56*0 64*0 

■fsr 

•6650 

5750 

5770 56*5 

Jty 

56*0 

5750 

8750 56*5 


CRUDE ML (Ugrq 42*00 US gals ^barrel 



Ctose 

ftteou* 

Wgiyiaw 

Dec 

18.66 

18*7 

1856 1856 

3an 

18*8 

1877 

18.71 18*8 

Feb 

18.49 

18*7 

1850 18*8 

Mar 

18.45 

18*8 

18*8 18.40 

Apr 

1653 

18*4 

1656 16*7 

i£r 

18*5 

1658 

184018*0 

Jun 

1852 

1640 

0 0 

*y 

1&15 

1828 

18.15 18.15 

Aug 

18.10 

18*0 

16.15 18.10 

Sap 

16.15 

16*5 

18*0 16.15 


9"° 88*0 69*5 

J* 55*6 56*6 

ffb 5440 54.70 

Jkr 52*0 5240 

5810 5850 

4895 4825 

Jun *860 46*0 


SOYABEANS 5*00 bn min; canta/60fa bustier 
Ctee Prevtoue HjflttfLaw 


5825 55*5 
55*5 55*0 
54.70 5470 
82*0 51*0 
50*5 50*7 
4825 4885 
48*54860 


INDICES 


Nov 1$ 

Nov 12 

ninth ago yr ago 

! 16835 

1868* 

16795 1817.1 

| DOW JONES (Base: September 18 1931 -100) ! 

|Bpot 128*9 

12757 

120.14 

Fubaos 130*5 

12950 

11857 


Nov 558/0 583/6 

Jan 567/0 569/8 

Mar 574/0 577/4 

May 678/4 580/6 

J»y 681/4 693/4 

Aug 579/0 . 681/0 

Sap 568/4 572/4 

Nov 570|/4 571/0 


562/4 555/0 


7/01 
0 577/4 
583/4 570/4 
581/4 579/0 
573/4 569/4 
572/0 567/0 


UVE CATTLE 40*00 te: centtjte 


V 



Ctosa 

Previous 

High/Low 

Dec 

Bum 

83*6 

83*6 8356 

Fab 

60*2 

5953 

60*5 5950 

Apr 

8252 

62.82 

63.12 62*0 

Jim 

83*2 

6257 

6357 

25 

6155 

61*8 

6152 81*0 

Oet 

6050 

6055 

6055 60*6 

Dee 

coot) 

61.75 

62*0 BITS 


7 



. y 




Financial Times Tuesday November 1 7 1 987 


ni a 


CURRENCIES, MONEY & CAPITAL MARKETS 


FOREIGN EXCHANGES 


Mr Reagan moves the dollar 


President Reagan's remarks were 
the major factor influencing the 
dollar yesterday. • 

Towards the end of a 'very 
good day for the US currency tn 
Europe,, President Reagan intro- 
duced a note of alarm in relation 
to cuts in the budget deficit.’ 

Referring - to ’ negotiations 
between the White- House and 
Congress on the budget deficit 
he said- ‘hiking tax rates is the 
wrong step.” He added the 
administration is 'determined to 
achieve at least a J23bn reduc- 
tion (in the deficit)' this fiscal 
year." 

The problem for the market is 
that expectations of a significant 
reduction appear to ' hinge on Mr 
Reagan softening his view about 
higher taxes, and that S23bn is 
only the level demanded in the ' 
Gramm Rudman bill, which 
readies its deadline <m Friday. 

Over the weekend Mr Reagan 
raised hopes that White House 
and Congressional negotiators 
would toon agree on art $ 80 bn 
budget reduction package over 
the next two years. 

This would include $30bn this 
year, as opposed to the Gramm 
Rudman S23bn law, and *50bn 
next year. In order to reach 
these levels the market expected 
President Reagan to agree on 
some form of adjustment in taxa- 
tion, but yesterday’s remarks 
were not encouraging 

Hopes that the budget deficit 
would be cut by S30bn this year 
encouraged early covering of 
short dollar positions. Techni- 
cally the market was already 
moving in this direction, after 

the dollar’s recent extensive 
elide. 

£ IN NEW YORK 


lit reaction to -Mr Reagan’s 
later remarks the US currency 
finished around its lowest levels 
' of :the day, . but still above Fri- 


day's dose. _ 

■ The dollar rose to DM1.7025 be the b 
from DM1.6880;. to FFr5.7575 administ: 
from: FFr5.7250; to SFrl.4015 looking f< 
from SFH.3875; and to Y136.50 the US cu 
from Y13S.90. The dol 

On Bank of England figures against D 
the dollar's index rose to 97.7 Frankfurt 
fro m 87 -0. desbank c 

STERLZNG-Trading range the dollar 
against the dollar In 1987 is compared 
1.7950 to 1.4710. ‘ October ously. 
average 1.6620. Exchange JAP Ah 

rate index fell 0,5 to 749, range ai 
compared - with 78.8 six 1987 is II 
months ago. *. ber even 

Sterling declined 1.70 cents rate inde 
against the dollar to i 1.75 10- sixmontl 
1.7520, but (dosed at its highest The yen 
level of the day. The pound was dollar in ‘ 
unchanged at SFr2.465Q, but US currer 
eased to DM2.9625 from cal, but a 
DM2.0850; to FFr 10.0850 from Reagan's 
FFr30.2250; and to. 7239 from meric can 
Y240-25. US budget 

A larger than: expected rise of financial 5 
0.8 dx. in October UK retail sales Dealers 
had no Impact. relucant t 

D- MA& K-Trading range an agreer 
against the dollar in 1887 is doUar cl 
1.9805 to 1.8590. October Tokyo, co 
average 19011. Exchange on Friday. 

EMS EUROPEAN CURRENCY UNIT RATES 


rate index 1499 against 147.5 
six months ago. 

The D-Mark lost ground to the 
dollar in Frankfurt, after a quiet 
day. The main factor appeared to 
be the belief that the Reagan 
administration is no longer 
looking for a fail in the value of 
the US curenev. 

The dollar dosed at DM1,7190, 
against DM1.5915 on Friday. In 
Frankfurt the West German Bun- 
desbank did not intervene when 
the dollar was fixed at DM1.7159, 
compared with DM1.6928 previ- 
ously. 

JAPANESE - YEN-Trading 
range against the dollar in 
1987 is 159.45 to 13490. Octo- 
ber average 14397. Exchange 
rate index 2279 against 2269 
six months ago. 

The yen weakened against the 
dollar in Tokyo The rise of the 
US currency was partly techni- 
cal, but also followed president 
Reagan’s comment that agree- 
ment can be expected to cut the 
US budget deficit fay SSObn this 
financial year. 

Dealers said the market was 
relucant to trade actively until 
an agreement is reached. The 
dollar closed at Y136.E5 in 
Tokyo, compared with 7136.05 
on Friday. 


FINANCIAL FUTURES 

Gilt prices lower 

Gilt prices were weaker for little surprise becaus 


much of the morning in the Lon- 
don International Financial 
Futures Exchange yesterday as a 
further recovery in equity values 
reduced the possibility of an 
early cut in UK clearing bank 
base rates. 

Traders found little room for 
optimism because trading in 
most sectors was Influenced by 
talks between the US administra- 
tion and Congress on efforts to 
cut the US budget deficit. Com- 
ments made by President Reagan 
suggesting his desire to avoid a 
rise in personal taxation came as 

UFFE LOW BUT FBTBKES omeea 


little surprise because he had 
resisted such a move from the 
beginning but the comment did 
little to improve market senti- 
ment 

With traders less than willing 
to make any long term commit- 
ments, trading volume suffered 
accordingly. Long term gQts for 
December delivery opened at 
121-20 down from 121-25 on Fri- 
day and fell to a low of 121-07 
before recovering to finish at 
121-19. 

US Treasury bonds opened at 
88-26 for December delivery and 
slipped to a low of 88-16 before 


LVFEHTKHHri 


iuse he had coming back to close at 88-26, 
ve from the down from 89-01 on Friday, 
ajmment did Three-month sterling deposits 

larket send- finished virtually unchanged. 

Once again trading tended to a 
than willing nttle subdued not only because 
arm commit- or current talks to cut the US 
une suffered budget deficit but also because 
erm gQts for this week sees the release of UK 
r opened at money supply and bank lending 
21-25 on Fzi- figures. Neither of these are 
yw of 121-07 expected to be encouraging. 
to finish at However there was little Incen- 
tive to move either way and the 
Is opened at December price ended at 9L13 
delivery and U P from 91.06 at the opening and 
88-16 before 91.11 on Friday night 


UFFE FT-SE 1M MBEX FUTWES SPINS 
Sbfte CMs-UR PNj-Ut 


ISDA-E 


Reuters and the International Swap Dealers 
Association announce a new series of pages 
to provide a source for interbank interest 
rates in the major currencies. 

Call Drone Chowdry or Amanda Jackson at 
Reuters on 01-324 7497 for more information. 


SMe 

CafeOast 

.Pnbrlast 

Strike 

CaUtlAS 

PrisJral 

SiSe 

Ctt-ua 

Price 

Dec 

Mar 

Dec 

liar 

Price 

Dec 

He 

Dec 

Mar 

Pita 

No* 

Dec 

116 

<39 

<e 

061 

166 

62 

<52 

<561 

060 

160 

18000 

L67 

728 

118 

3.44 

505 

066 

L43 

84 

<59 

528 

OOl 

L36 

18250 

109 

<46 

120 

L59 

401 

021 

229 

8b 

<L55 

403 

«w 

201 

18500 

062 

5.71 

122 

0J0 

361 

U2 

329 

68 

120 

262 

032 

366 

1B7S0 

056 

563 

124 

CU3 

202 

269 

4.40 

90 

022 

203 

L34 

401 

19000 

037 

<43 

126 

003 

103 

<29 

561 

92 

006 

L30 

308 

538 

19250 

• 024 

368 

128 

000 

LOS 

626 

731 

94 

ao 2 

161 

<14 

769 

19500 

005 

339 

130 

060 

028 

1026 

1056 

96 

OOO 


912 


19750 

006 

2.96 


EBtoted raW Hi Cafe 16Z7 Puts 370 
Praam ray* opente C*b 43227 Pats 55147 


EstinwH «km total Cafe 54 to* 0 
FrvriOH dWi opes be CNR 3299 P*s2283 


Esti noted ntawe tot* Cafe 0 Pas 0 
tarimtefcraeate Crib 47 Puts ITS 


LSO 24Jfl 
US 1900 
100 1400 

165 900 

1.70 ASS 
US 145 
ISO 0L3S 



Ete 

central 

rate* 

Cwrency 

■M_t 

atana Era 
HraOA 

%dWX 

bow 

central 


Dhmeace 

Unfe% 

%gi!£= 

German D-Mark 

fimt Fm 

Dutch Gator __L_ 

Iron Punt 

Italian Ua 

765212 

265853. 

<90403 

231943 

0768411 

148338 

430678 

7.96412 

266661 

<98102 

232729 

0775598 

151468 

+L67 

+L43 

+039 

+102 

+034 

+0.94 

+266 

+0.90 

+066 

JL38 

+035 

-043 

+017 

*13344 

*L6404 

*L0981 

*13674 

*L50Z2 

*L6684 

1 i 1 1 

tel ^'-i* — * — i — — jt* — u- - ~t 

AtetBtoctattffldtyHaawliiTbito^ 




Jb M l» Dm 

2400 OOO 

1900 1900 HOC 

1400 1400 fl m 

U4 UD US Oil 
5j*6 667 <36 077 

205 145 180 234 

136 105 2076 657 

nRMklMO 

she Caffs 422 Ms 1391 


PlBfrUit 

Jaa Feb Star 


E120>00 tea* per CU 


— 

— 

006 

Strike 


C dfrtan 



to*- 

LBI 




022 

Price 

Dec 

Jan 

Feb 

Mar 

Dec 

te 

U 

n 

• 

063 

L45 

12.90 




270 

_ 


064 

177 

153 

150 

2050 

. 

_ 

2060 

o» 

_ 

m 

166 

2M 

303 

155 

2205 

. 


2205 

030 

_ 


<15 

562 

557 

160 

1705 

2705 

• 

1720 

030 

035 

m 

736 

832 

864 

L65 

1205 

1220 

• 

1250 

040 

065 

. 




LTD 

530 

530 

MO 

<90 

L2Q 

L70 

2J00 




L75 

270 

US 

3.75 

465 

365 

400 

4J0 


7 "eati i 
ft Kenjj 

crop 


22 POUND SPOT- FORWARD AGAINST THE POUND 

£Spot„ — L7405-L7415 L7M5-L7705 , ... 

i watt — 2-&2S!" N0«O6 am OMMb * % 

ffl£b= S£S8E'. 5SL- - - M. « M. 

“ Bgi &£= a ^ {s 

STERLING INDEX •' 8ET_z: 1 i£2£S ig wJ&SC 'fcS 

a r^r WSi iS^Sk Sffi J3 

H30 w 753 *5*-= -350 -la 

gg z = S' p sOkSI 358 

j^ 00 » — — «6 753 Sweden 10.71-10.75 1074-10.75 ySS - vKpS -030 

ss : as. si as.— §saa ssfga *3us: is JSgl ss 

2R0 pa 743 KJ Swttsrtaod. 2A5-224I, 2.4 <246 IV-Biron 560 X-Z?£ti 469 


£Spot„ — L7 
I motitftL— ( a_ 

3 ■ouths OLi 

12 nootfei — I j,i 


R30 an 
900 an 
10J» an 
11.00 as 


Eu^aoirampnl 

strte 

Price Dec 
1350 5,75 

10.75 630 

1.700 A60 

L723 3l2S 
1.750 UO 
L775 LOO 
U00 0L55 

Esttasicdntmta 
Prartan +Ssaptai 


JR Pus-Las 

Feb Mar Dec Jao Feb Mar 

- 9L45 0^5 080 . L55 

7.45 7.70 1030 130 LOO 1210 

5.75 610 aqo 1H5 235 ?RS 

430 A80 L60 2J0 140 395 

110 160 2J0 195 A70 125 

235 2.90 430 5.70 625 6R0 

135 LOO 635 735 800 8A0 


ȣ342Pns%667 

*101506 hSilt 


M* 107054 


Estasted Mens mat. Crib H/A Pm WA 
PmteriwsapeatS 0*620 Pms4Z7 


Strike CaSs-US Pus-las 

Price Ok Mar Jra Sqi Dec Mir Jue Sep 

89.75 262 2.49 234 2M3 000 0.02 0H6 R17 

9000 23 7 jx 2JR L82 OOO QJB 008 071 

902 232 201 L78 L62 OOO 004 OlO 026 

9050 L8? L78 L56 L42 OOO 006 0U3 031 

9075 L62 L55 L36 L24 OOO 008 018 038 

9L00 137 134 L16 106 OOO 012 023 045 

9L25 133 L13 097 090 URL 016 029 054 

ERioatcd ala WR, CattlO Pm 205 
PmtondWflPWiR: Cafis2S14 P«M 


IjON DON 


CHICAGO 


CONSOLIDATED COMPANY BULTFONTEIN MINE. LIMITED 
RcctanHM Ne IUBM06JM 

CBtlOllAlANP WEST D4AMONP MI NING COMPANY. PUIPTISfAN MINE, 
LIMITED 

blSlMlB Ne IIMMI34M 
(Bath Im^eeattRle Ac RepeMcefScMk Aftice) 


DECLARATION OF DIVIDENDS 


Notice it bcitby ghu that tbe t Ui ea o ra of the abovemenDoned oompnio have 
dedered divuteode ia mpea of the «ix moeiih* cndun 31*1 Dec ember . 1987. payable 
to abateMden ntstoed ia the books of the respective co m p anki at the dose of 
btiBoess oa 18th December 1987. The div id ends love been dedsred in the currency 
of tbe Republic of Sowh Africa. 

Dividend warrants wffl be potted from the Kimberley and United Kingdom transfer 
office* on or atom 2nd Fdnan, 1988. Re g is ter ed aatdddcn paid by the United 
Kingdom Registrar* will receive their dividend in United Ki n g d o m currency 
conve ne d as tbe rate of *— *— gr applicable on 2lss December. 1987 less appropriate 
taxes. Any sneh shareholders may, however, dm to be paid in Sooth African 
cur re n cy, provided that any such request is received at earoasnies* transfer offices in 
Kimbaicy or the United Kingdom on or before 18th December. 1987. 

The ordinary share transfer ngsun and registers of members wiB be dosed from 
19th December 1987 to 31st December 1987, both days inclusive. 

The e ff ect i v e rate of non-nandcat shareholders* tax is 15 percent. 

The dividend is payable satyect to c o n diti o n s which can be i ns p e cted ar Ibc head and 
Loodoo offices of tbe compaies and abo ax tbe offices of the co m p ait icf transfer 
of fic e s m Kimberley and the United Kingdom. 


L NOTtMAL GILT US. 

■d uo% sue, 

Cl me KJtfc Lo* Pm. 

121-19 121 -S 121-07 121-25 Dee 

121-17 - - 121-24 Ms 


BafcdiMH 

Latest 


JAPANESE YER (UW) 
YQLSwggerYiab 


Loo pm 
2D0 pm 
3.00 pm 
400 pm 


Austria 1 

Swt u ert au d.l 


1 ER toted Vuht XgaOOOWSI 
Pmta* (Ws epea to. 28358 (28430) 


U% MnotULi 




Balgto rate b camenMeJ fram*. fiwU tarn 6290-6100 . Sx-mmlJi torawtl Rb 127-L22mm 
12-aaHti letWMl dollar L95-L85pm 


Oast HU Lew Pmv. Mar 

10430 104.40 103.90 10532 Jm 

1X040 UDJD U04Q 104.90 


Latest Hto Low Proc 

88-24 88-5. 88-15 80-26 Dee 

87-25 B4-00 87-23 87-28 Mar 

86.33 87-02 86-23 87-02 

86-10 Sep 

85-18 8523 8506 85-21 Dm 

85-02 

84-17 

&4-C1 

83-18 

83-OC 

82-23 


0.7318 0.7322 17290 a 7379 
0.7382 0J382 0.7350 0.7440 
0.700 0.7430 17402 0.7501 
0.7505 07510 0.7505 07562 
0.7623 


Cbm party 


rv—KiMMwi rv un p aii j Bnhfinuein 
Mine. limited 

Griqnabnd West Diamond Mining 
Company, Dntorupoo Miflf. Lintiicd 


South African Currency 
per Share 



By order of the Bawds 
For and oa behalf of 


For and on behalf of 

ANGLO AMERICAN CORPORATION OF SOUTH AFRICA LIMITED 

London Secretaries 



London Office: 

40 Hdborn Viaduct 
BC1P lAl 

|7tb November. 1987 


J C Greensmilb 

Office rf United Kingdom Transfer Se ts e iaii cs: 

HM P n«M wt im h a .n m Jm 

6 Cicencnat Ptace 
London. SWIP 1PL 








Sr 





249.90 24730 
25L50 anjoo 


INDEX LTD. 9-11 GROSVENOR GARDENS, LONDON SW1W OBD 

Tab 01-828 7233/5699 Reuters Coda; IGM. IGIO 


FT 

»T 

1310/1325 

ni7Am 

— 

17 
in 1 


£W0RLD VALUE OF THE POUND 


The taMe below givei the hdast nmitole mb» ef airtnngi fcr the nenwd agdml en 
average ef teqFta* and seffiag nte eaoept where Bmy are stown ta be ottKrwkeL In i 


19*7. ta 


FrtadtFiW. 
Lbs ■ 

Yen 


1975-UOL 

OTHER CURRENCIES 


D. Cnildor-^ 
Sm.Ftoc_. 
DentsdunarK 
Fr. Franc — 
haflaeUre- 
B. Fr. (Fin) . 
B. Fr. ICmJ 

Vm ; 

O. iCiww — . 


Lons tmEuradotov two ms 
Die rears 9^-9V per cent ae mb aL S 




7J-74 


ritti i M W Vehme 640 516244) 
Prevtas tors <*m lm-38078 C9157J 


U3.TKASUKY MMSI 
; SUXLOM XMluf Ut% 


kqtol ntef (Bk) hankers rate; | 


Jae to. 
88-16 89-01 


L rates («*>■ 


VALUE OF 
£ STERLING 


) free mterfP) based on DS 
e rata; (MihiawHI rate (« 
eatt; (sg) seB»| nte;(c) O 




EXCHANGE CROSS RATES 



EshmMerf Vehme 572U90SB 
Pievtas dp’s spin W. 9688 (91571 

CURRENCY FUTURES 

F»N»*(FaaaMEaBIAME)" 


1-vth. 3 -ctUl 6wlh. 12-nto 

L7484 L744B L73U L7325 


ims-srEBunc wawe 


Ckm Hlah lav Pick 

L7400 L7410 L7370 L7675 
L7335 L7370 L7H5 L7625 
1.7300 L7330 L7250 L7575 


LUT&STEKUHBnSjDMSpwK 


Close Him Lew tow. 
L7381 13405 L7295 L7629 
L73Z3 L7345 13305 13572 
L7275 L7275 13273 13519 


Yen per L000: Fietoi ft. per IDs Urn per L00& Bripn Fr. per UKL 


PriNtam dW* npw to 157 057) 


MONEY MARKETS 


FT LONDON INTERBANK FIXING 


London rates rise 
where changed 



The Mg mug arr fee arUhned; mean imM If tto arawt am+ttaA ef to Nd mi effem 
ntonaeim hy to meriw m to rinwewetadnmllUOanL The hmW am 

WWMterBte Bait ofTdWi DMSche Bari; Bmqm Hadowl* Paris telioqmCawrayTti 


oOmOtmahr 


Interest rates were slightly 
firmer at the longer end in Lon- 
don yesterday. A further 
improvement in equity markets 
reduced recent p ress ur e on. calls 
for another cut in base rates 
which helped the shorter end 
but longer periods reflected con- 
cern about the effects of exces- 
sive growth in money supply 
and bank lending both of which 
are due for release this week. 

Three-month interbank money 
was quoted at 9fe-84b p.c. from 
9-8% p.c. Overnight -money 
opened at 9V4-9 p.c. and rose to 
916-9 p-c. before slipping away to 
6 p.c. Late balances were taken 
atotLC. . • 

(ending rate 0 par cant 

from November 5 . 

The Bank of England forecast 
a shortage of around 5700m with 
factors affecting the market 
including the repayment of any 
late assistance and bills maturing 
in official hands together with a 
take up of Treasury bills drain- 
ing Sl.OlOm and Exchequer 
transactions a nominal S5nt In 
addition banks brought forward 
balances &70m below target. 
These were partly offeet bjra fall 
in die note drculatioii of «375 itl ■ 

The forecast was revised to a 
shortage of around £80Qm and 


the Bank gave assistance in the 
morning of £187m through out- 
right purchases of £137m of eli- 
gible bank bills in band I and 
550m in band 2, all at 8% p.c. 

Furtha: help in the afternoon 
came to 5444m. and comprised 
outright purchases of 55m of 
local authority bills and 5288m 
of eligible bank bills in band l at 
8% p.c. and S38m of Treasury 
hills and 5163m of eligible bank 
hills in band 2 also at BA ixc. . 
Late assistance came to &16um, 
making a total of 5791m. 

- In FrauJkftirt call money was 
quoted at 3.65-3.60 p.c., 
unchanged from Friday. Short 
term liquidity remained in g ood 
supply and traders were expect* 
ihg conditions to r emain com- 
fortable for the rest of the week. 

This was partly explained by 
tomorrow’s close of centres in 
West Germany for a public holi- 
day and the absence of any 
maturing sale and repurchase 
agreement this week. 

Tn Amsterdam the Dutch cen- 1 
tral central bank accepted bids 
of Ft 467bn f or threeday special 
advances at 48 p.c. down from 
5.1 p.c. at the previous ferility. 
This followed a cut in the Dutch 
discount rate on November 4 
The fresh injection of funds was. 
designed to offset the call on a Fl 
4bn state loan due yesterday. 


Wuter Ba< Safe «l Trim 

MONfeY RATES 
NEW YORK 

(LokMIim 


835 tom 
B30 ShmA. 

a ar- 


Treasury BJUsaad Bands 
435 Ttnajcv. 

~ z zr 2S 

= S ^£z 


L55-3A0 L50-3A5 3JP-19S SS5A00 3.KMC5 

86875 88125 86125 BJ02S 960 

LOO 335 - 460 

<25 <9375 - 5X25 

92«i7«r 184375 - 196875 

1025 10875 . 1135 

ins 90= 9J25 950 


LONDON HONEY RATES 


Om Ttoe 


MHferarm to 
HatoW. 

StafluodS.^ 


LnrR le torili Duedi- 


9150 U25 90625 VOS 9125 91875 

m u» Bin ara aro ag» wo 

- - - 960 8.406258 KS4375D 9173 

SrpE . 8025 8B75 9B75 8.075 . 960 96625 


. - 94375 94375 950 9S62S 

7.937S 900 673 625 860 

925 - 90625 900 9125 91675 

. - 96625 96625 9325 925 

. - SJQ2S 635 - 

. - 8 6125 86875 85625 

. 9,4375 93125 . 925 

6i»465 7J5-7J0 7J&-7.45 7.90-765 

63S 630 <5625 66S7S 

- - 5^5 <25 <312 <4575 

* - - 73875 7.25 -72 7.4375 

. - 7662 7025 7025 73125 



a rale is aontaaL Marital rates ne (to 
! af feraipB crareacira la wfeidi thqr an 


arafrt rate; (Bra) baric nil: fba) 
I rata; (oam) ratal; (o)om!2l 


VALUE OF 
£ STERLING 


excto)3924 

w {Sot 

7239 

Pc*a tM(i 

ft Swritag L7390 

ULZ. Dollar 26393 

ZhayCel S5&64 

Eseodo 24L2S 

U6. 5 L7515 

RDM _ 63600 

FmcbFirae 11X0850 

Leete) 1523 


StChrMapber 

St Hriena 

St Lada _______ 

St Ptarre _____ 

StVtodR 

San Matte 

SaoTrac&pTtotaDR. 
Saadi AtRbla ______ 

Sanato _______ 

SqcheUes _______ 

Sian* Leoee 

Slogapore 

Sofemon Idawtb . , 


To- 1 - - — 

SaariA tots in N Africa 

M Lanka — — 

Suita Rffiriric 

Swraftaadli r HZ 
Swwrin 


Taiwan 

teg: — — 

Tria&aATanaa n- ■ 


E. Caribbean S 
toad 

E-Cw&teaa* 
French Franc 
E. Caribbean S 
HananLira 
Dobra 

C?Sa. Franc 

5S 

Dollar 
Dollar 
SbUtag U> 


f (cm 13.5118 
Mfn>553l5 
20060 
20060 
53.90 
<3787 
30264 
3L5UB 
10.7450 
2.4530 
<8746 


Tkrts £ Cato* raab- 


DoSwCo) 
Shffllng 
Bant _ 
C.F.A Fraoc 
Pa’anga 
Dollar 


New SbUSng (D 
Dlrioni 
US Dollar 
Pwo (ta) 


Vktwra ________ 

Vlrgia btsodc (BritlRO 
VDstatriaadsniS} — 


- ton (o) 

- 5F§ 

- us $ 



OU17BO 

05972 

10*22 

2266688 

1960 

2.9650 


SSCSS5; : : : fish &r x 7 *»* 

ecuSSdS^: * - - ™ \ 

ECUmadDraBW « - 76625 7025 7025 7J125 

SltrllM Enwl Ranee, te mtagScTO&R 30 , <1987. toe* if toe* hr period HijvtMSEJt 
25 *^ D^ISbS fc UJ* V- Wrora « fr ft l2? p* Rahran rate to mjed 

OCTOffiEl to oerdflER ia . 1967, Schema >0x094 ^c..Lanl tohari^aad Oran HgMaaw ra ddyg 
ottos oral to* 1 Broi. Fiaaxe Hants Bare Kata 105 taai NOVEMBER 1 , 1967: Barit DepoA 
Ran to- ra» m mb dbn atafct 3-L5 pt am. OatiBam of Ta tkpoRi (Sarin fu; Deposit aOQ£tt 
SawWirirw iaiit*7SP» teKdB*eara warahi &00 per cent; ten* wontfe 860 per co« 
shc-ritt moeto 860 to oa: aC raata a moods 860 per cent; Uodtr £ 1 00 ,000 660 per cent ben 
Itawmto 5, Derate wlthteam tor ca* 560 per ceol. 


■ftete b the traarier narinilrnwmtoO. 

rate. ODlRate far otpMt. Q4]Near^aB 
«st>m tamteed Omdar 13,1987. 


IlgfcMr oneeffldX rate. CDEmmlai goito OPreferemial rm for priori} baporet ra* a* fpodtoft-JCtoferemta lrau far Pride Scctar Debt and EaeaUll kaoeru. 

OTrtfcra attal tata.tt)ftee roe tar toaiy lnWiaratora»«ta«aq abnflrad hralra 

R bariaess tmartlnm dSUBgH^AactlH ptefar date N/A. QjWaU^ltaw ennrac » tatntert (SaBrin^wortb In toasUaa 1 J987. aTUrtMJaa twn tier 

























































ACROSS 

1 Dance in Massachusetts (6) 

4 Study leaflet and reach agree- 
ment (S) 

9 Can youngster come bach 
with petty officer? (6) 

10 Law breaker gets out from 
ship’s protection (8) 

12 Deliveries to ruler - a supreme 
master (8) 

15 It's brought bock in large cre- 
matorium to punish (6) 

IB Correspond with clubs for 
example (4) 

16 Point to men working with 
unlimited power (10) 

19 Reformer makes demonstra- 
tion to hill dweller (10) 

20 Way to record pace (4) 

23 Sluggish second boat at 
Oxford (6) 

2B Boss, one to love us being aca- 
demic (8) 

27 10 may be given this in coart 

( 8 ) 

28 Strict clergyman rejected in 
bishop's diocese (6) 

29 fr^nuit vegetable or flower 

80 1 object • money not sent back 
for strong doth (6) 

DOWN 

1 Page-boy seen in haberdashers 

cry 

2 Could no saint be in this gar- 
ment? (9) 

3 Prophet displaying gold bee 
material (6) 


amauRB aaanstasH 

□ nasnmaa 
aanmannara matnaa 
uaaQHaaii] 
BEoa annnaHHBsa 
n m a n r n n 
aaaaaaa gaaanra 
a L; u a a s 

saarass uamorsaa 
ra a a o 0 a a 
□□□□□□Haaii] aiiiaa 
aaanmnaH 
nnroora raruasnaaaa 

□ naganmn] 
annarnamra taaaaara 






















































































































































“ ? 


s Ai\cj_»ijSb 




























































































































































































39 



































































Financial Times Tuesday November 17 1987 


i«7 

1*4 


AMERICANS— Continued 

J « i? MiUsr 



CANADIANS 



5X3p *4 
«7p +36 
2S7p -6 
J*6p — 
599p +36 
zm* +4 
7Mp 4-34 
U% +% 




- 2.9 " 

u "P 

- S Hfi 

_ u 190 
-U » 
_ 41 154 

- 63 «» 

- 3.7 Wa 

- 7.4 W 

- HJ ,Wi 

_ ini 1020 

_ u 155 
_ U M5 
U Qffl 

- L? «M , 

- 22 

- 43 1« 

- 7.1 Z™ 

- «■* 

— U 141 

Z _ 314 

_ _ 67b 

M3 
406 
413 
_ 195 

— Z 368 

” z 341 
“ 418 

— “ 170 

“ ~ 543 

£12i 

ztS, § 

575 

Z £5 Jg 

S ■so 

— »• £US 

— Z 153 


41b 
348 193 
•493 192 
948 267 
406 197 
423 235 
233 86 

149 109 
413 205 
71 30 

815 275 
206 99 

2Z7 77 

*177 68 

367 204 
309 198 
•313 133 
200 131 

444 242 
288 163 


BUILDING, TIMBER, 
ROADS— Cont 

*» l 


DRAPERY AND STORES— Cont 


ENGINEERING— Continued 


m f<rw aril n £5 

•Hntmr 1 
1 

W1 2.9 40 1L5 £2 

60.* 43 21 140 
hit 3.9 2.9 113 

— — — — nn? 

♦fiat L7 11 345 nj 
VO* 21 54 8.9 
89.77 26 50 106 £5 

OSM * U « 

78567 52 33 7.9 
Mb! 12 44 92 m 
tU 26 Sb 9.4 ic 
8%* - 96 - Ss 

UU U | 5 q* 
IMi 16 2b 14.4 TS 
tl4! U U 16 
1531 72 12 158 
171 21 52 124 
U 25 O 112 
HOI 21 43 132 
14J 20 3.9 168 „ 

625 25 3 1 17.4 " 

57 4.9 34 82 
71 45 20 10.7 ““ 

LZ U 31 38.9 ™ 

1161 21 6i mo 22 
125 34 L7 24b S 
171 lb 60 13b S3 
fUJt 51 17 140 KS 
11 41 22 107 
161 4.9 28 9.9 -2, 

6153 35 24 280 £*l 

M.7! 17 29 HJ £TL 
14 ♦ 23 6 S® 
A! 27 4.9 9.9 ?2Z 

131 23 42 107 iS 
87%% - 85 - 5! 

OH 72 10 181 ?£ 

1831 14 35 114 iS 
pi 22 45 24.7 
105! 23 6b 91 9g* 

43 16 28 13J 22 

131 3b 23 16J £2 

1825 4.9 14 68 55 

M ♦ 70 « IS 
1872! 27 40 124 SS 
(855! 33 33 124 
62 5b 28 8b ^ 
191 25 29 132 J5 
161 11 42 105 
tSu 49 27 102 *S 
11! S3 12 20.9 iS 
141 21 42 154 
9185 18 49 154 j™ 

11042 40 31 109 ^26 

83.7 28 3b 130 ^ 

6207 51 20 111 ^ 

153 34 27 147 
147 37 12 lib 2? 
8436 24 44 30.8 
134 30 34 137 IS 
121 69 14 140 £5 
147930 35 88 in 


M7 

S96 U8 

220 US |TfcS5tao5p 130 (+7 

267 140 tttctlBitaife. 180 *2 

ZB. 92 HefelfcSa U8 

2S2 83 The Me. lfe 150 4-2 

393 76 llpToplfe 78 ...... 

•135 66 n»VataelalslDp_ 78 4-3 

264 115 Undewaohlfe 123= .._ 

19 U%Uprtt£J 95 .... 

22S 95 riKfffnsttSp- 165 +7 

•SB 114 184 92 

437 257 NtaVUte 3330 45 

16Uj 99 OflCvMPrnOp. 1X7 63 

275 73 W+BaflUWJ 99 

31$ 153 HitfUb IBS -3 

295 135 nfeQK.te.lfe_ 185 45 

142 68 IMedSMrSp 85 b -2 

Z1S 80 I Wu a ftie B - — tlflp. IS 1-10 

461 266 MMwrttHIfei 295 46 

<206 Q17V Do.8%BcU>20Qa_ 033% +5 
153 95 TMridcfLnflwlfeJ 108 Tl. 


Nd IfivIcnlME 1 
18175(40 U 185 1 
13! 28 27 185 I 
LU 42 14 25.4 1 
13X 35 28 118 

20 LD 35 380 ; 
2J 34 44 84 

21 25 28 197 

155 Zb 4b lib 
WJ M 3.9 149 
17.! KT 13 137 
U - 70 - 
LC L9 14 — 
23 5JL U 20.9 
23 03 19 - 
■373 23 24 244 
2C 49 37 29 
00.7 23 45 13.4 

eSi3 41 luu 


ELECTRICALS 


BANKS, HP & LEASING 

m 1 Slock 1 Price W £ IcJertf 


259 128 0NZSA1 

•273 ITS AHMfrttfi 

•065 £UPs Alaanaio FUO 

138 a tagkibtah 

108 75 hetacto-WJlo^ 

£491, £W tacoBoBauSJL. 
£34*j iZPi InokSaarier. 
•245 175 UbtbMilia-. 

05 OH, IbbUonl 

350 240 JUml<UU£l_ 
64) 395 taAScod»d£l— 

88 65 MofWOa 

659 03 BntaVCO 

•83 35 lnbnrtt2fe 

620 465 imnSfatpicya 

135 58 hntaasilcrtTa 

•480 290 terADcoa 

433 137 KlKninMa- 
£264 a« >nmenbkDM10— 
127 08 CtaUtt-KrlOO 


Wco I — I Hot (FwlBrtllW 
151 k-12 QZld 1 4 

I9S HUM 28 74 66 

OZi 3 02-7% 21 65 73 

65 .... pQMW 14 68 16b 

75b K2J — 37 — 

£34>q 03844 30 29 lib 

£251, KU9J51 27 21 - 

288 -5 01576 29 77 68 


359 165 
190 103 

OA OlJj 

■08 298 
270 132 
04 84 


smM.Fk. 10 p_ 

%6»cMkdM. 

rtPacflcHUss.— 

1 Bar* Y50 

TwibNMiaBL. 
rietknaMSp — 


798 398 MISMurt 79# L.. 

*87 47 IKSaak-WCCJOJ 53 f_. 

•565 4111, taw* 

194 134 aBg£5knaea20pJ 360 L_ 
•610 5U a£awt,BMMLJ 333 1+3 

08 218 LMsa J 848 1-2 

763 183 ilSni$5 ~Z_J 208 M 
•567 308 IIMMdElZZZI] 393 hi 
599 ZQ Uorg»i CreSflOJ 240 hi 
•210 126«|IMAM.Bk.ASl_J 183J+-1 
•791 498 lv.WW.CL — _J 563 (-1 
£420 as MomflMfc£20_JaaO U2 
175 68 laBnc.GiMp__J 73 \-2 

215 US Madrid entttfesJ lSUJ+2 
12B 51 OB-Wy aia. J 66 >3 

440 293 kMBk.arSoriarilJ 343 f-5 
288 127 rnoBMfwBIUdaJ 160 h-2 

07 TIB SdenOWfl j 975 H-7! 

£136 990 Do-OK/V J 900 L__ 

an OS 5 ! Sec PadftcSlO £UU+J, 

842 398 iUMQaniaJ 443 >11 
153 99 TSB . ... 1 113 f+6 

164 91 FTSBOMltdMfcJ 129 +1 

OJP, 680 MnDtaMO-J 813 — 
•575 2tt Htotn,(SOJ__J 313 M 

195 M2 ODfcpcADwPrfZJ 112 >3 

t3Pi £22V WeOsFkwSS 1 £Z3V-li 

316 156 UtaucSAlZZZJ US >11 


— 127 — U-9 — 

*2 116! 34 45 29 

Hm2/ 22 51 124 

-7 12LI 30 65 50 
UC lb 5L3R66 

+15 lOt — 29 — 

2J 23 40 157 
+5 207! — 78 — 

__ 3^ 24 23 ^22 

-J* 01B9t — U — 
+1 29 66 57 

+2V 02496 — 2b - 
*2 163! 37 47 85 

f2 6594 - 73 — 
f*, tBJU 64 58 27 

01591 50 02ra5b 

_ 17 i - 72 — 

M 87—4.7 — 

:z S«: iS : 
= SS z 


500 258 

m 100 

648 308 
520 246 
701, 13 
235 100 
£UH, £83 
258 132 
*230 108 

un 51 

312 135 
273 190 
445 274 
483 210 


CHEMICALS, PLASTICS 

pjMnFUO 1 £2Sy+% |KEBX|30| 


76 4* 

296 132 
EUtt £39 
.85 ZL 
111 73 

111 58 

440 278 
3tB 110 


471 no 
□0s 729 
*7*! 98 
229 124 
7% 540 
246 131 

239 141 
195 MS 
535 423 
361 202 

2280 140 
412 335 
541 335 
2KP, ISO 
145% 101 
482 259 
389 233 

97 68 

223 138 

20 1+5 
515 370 
OH 925 
154 HZ 
453 280 
603 30 
266 189 
•599 463 
385 253 
424 2771 

477 ZJ4 
445 235 


BEI :S & SPIRITS 



Leasing, etc. 


— 5b — 
45 66 43 

5a « 

4b 12 6b 

— 44 — 

— 33 — 
37 54 83 

77 74 U 
3l7 4.9 73 
25 68 67 

— L9 — 

— 27 - 

— 64 — 
L9 108 55 
37 52 87 
77 37 9b 

— 67 — 

— 44 — 

— 73 - 

— 43 — 
25 60 67 
42 L9I173 


— 416 177 

II 46 70 

277 165 
K 266 153 

* 48 

“b JOB HO 

,r, 30 147 

04 08% 885 

W, *223 114 

U SO 136 

~ 135 U 

“ U3 66 

« 308 156 


230 1106 
HU £76% 

□yj 970 
589 |361 
238 1IB 
IBM 103 
2431109 
05^657 

2 n 60 

£26k02 

2201120 
1H3 36 

300 rlQ2 
233 tin 
050 Q2H 
205 54 

125 54 

248 115 
800 366 
9b 47 
405 253 
362 162 
200 61 


raHridonfe- 

s lfe 

*r AS DM 50- 


Do.'A'HV — 
CajfHaaed! 
CmtataLlfe. 


•®3% 33 59 45 
m 2b 3.7 134 
US S3 23 157 
iai 2J 52 142 
51 3b lb 1U 
* 02 ! ♦ 27 * 
53 L7 59 157 
•QZ09C * 3b * 
171 12 64 046) 
1436 2b 4.4 144 
800.9c - 02 - 
141 2b 33 15b 
14.! 27 J5 13.4 
57! 33 59 103 
153 37 27 186 
157 37 2.9 132 
10b! 13 34 31b 
tai 19 64 1L0 


83 
74 
180 
170 
470 
225 
655 
610 
140 
81 
246 
£44 
£43< 

797 1 2B8 
183 72 

338 174 
436 269 
148 69 

•82 

061 . 

244 220 

290 92 
1 264 144 

405 101 
I 77B 123 
337 208 
•IS 83 
48 15 

*392 153 
306 182 
143 55 

ISO 75 
98 36 

512 266 

326 174 
135 69 

117 46 

U>% 3% 

51% 13 
230 95 

265 163 
115 16 

285 160 
265 170 
115 50 

276% 140 
301 170 
195 65 

139 59 

65 n 
86 S 
182 00 
64 30 

*565 247 
78 45 

585 393 

245 135 

291 78 

264 157 
215 MS 
176 70 

270 55 

86 48 


lUMMlfe— 30 

l Chen. £1 £», 

■rttlak. 50p 391 

*W*Ws5p_ 193 

S eCV.IM.Pr4-. 221 

Sp 123 

ata«Mimi_ 657 

naMHMn. 7 i 

• Ms.YI0-.30 £M 
MiASVSklO £» 

■J 143 

BonCWkJlOp. S3 

McHHgi 295 

IririlOp- - 166 

•rk«A&0«t»_ 034 
cUttatni. 129 
rga-BtnkilOp- 0 
v ff i>M J H»- uo 
irieSmslOp- 495 
B4Mftlpa.l0p- 98 


DRAPERY AND STORES 


3.9 M 127 
87 L2 10.7 
— 2b — 

22 35 15.9 
2b 4b 13b 

23 33 18b 
22 S3 108 
4b 1216* 


23 4b 113 
3b 3b 13b 
29 4b 16b 
28 3b 128 
L9 19 23.9 
U 25 3LS 
25 53 10 J 
21 27 23b 
43 29 147 
4b 24 217 

33 — 
35 29 134 
4.9 L7 16.9 
10 43 107 

— 73 — 
37 19 233 
37 5b 87 

87 — 

— (7b — 
2b 4b lib 

28 4b 102 
27 47 lib 
14 lb 347 

24 23 257 
33 23 167 
17 22 16b 

29 2b 237 
24 4.9 117 
23 19 173 
27 4b 117 
16 21 183 
19 3b 223 
19 22(213 


BUILDING, TIMBER, ROADS 

1 252 [AMECSOp ’ 1 290 |+-1S| U20|Z3|5b| 


! 13 24 3L0 QM 

( 29 64 lib 504 1270 

- — — — 146 fa 

■ 24 5b 9b zu 73 

l 25 14 162 Z77 137 

7 27 47 127 113 64 

k — — — 152 0 

6 33 19 lib 455 195 

) LS 66 120 40 15 

3 28 57 9* 233 128 

■ 25 4b 114 *U9 40 

! 14 17 10b 667 315 
I — 03 — 251 164 

I U 65 109 178 100 

L9 04 — 370 240 

— 124 — 297 170 

15 18 20.7 104 60 

26 47 9.9 195 86 

25 3b 126 340 146 

17 3J ZL5 76 12 

— 68 — 126 35 

14 lb 114 126 83 

77 03 497 31 18 

10 % 69 180 85 

57 25 7* *2*7 120 

♦ 17 ♦ 245 123 

44 18 n* 104% 23 
23 3b 202 ‘ 233 120 

23 2b 29b 173 a 

SS 12 £ M 

29 19 322 23 ® 

10 4b lib 248 IS 

♦ Zb t 380 243 

4 4b * 35 18 

3b 44 103 427 SO 

3* 28 104 1» 65 

13 28 1114 *267 MB 

173 71 

ies a a 

— — — 369 2D3 

3b 27 114 IS 66 

— 19 — 130 50 

— 63 - 92 17 

— — 209 336 ZM 

17 17 622 50 

17 19 177 285 

27 2* 167 657 

47 21 14b 205 

11 74 173 4C 

32 37 128 155 113 

27 37 119 3* 190 
20 57 115 66 25 

20 25 277 OO 108 

406 145 

193 73 

♦ 7b • f4 SJ, m 

62 03 703 109 47 

258 68 « 

03 08 — 87 71 

37 14 327 Ol 579 
34 35 114 U?% 

5b 17 21b 216 

16 10 87 908 

29 37 137 £32% 

33 25 169 134 

37 28 15b £26 
3b 15 108 335 

29 5b 913 05% 

27 21 247 46 

27 11 207 880 

21 47 15b 454 

4.7 23 Z1.4 136 

53 29 117 025 

47 23 122 360 

— 86 - 106 
4b 16 119 036 
— 21 - 06% 

37 6b 67 277 

27 37 164 220 

10 25 18.4 US 
21 28 183 258 

54 25 Mb 175 

24 23 19.9 185 

25 4b 129 354 


as 


277 224 

220 159 

115 51 

258 IS 
175 75 

185 92 

3S4 165 
70 33 

47 16 

195 73 

26 195 
348 184 


04 
lb 
20 
lb 
84 

05 
20 

£ 

17 37 
17 45173 
26 57 83 
28 S3 94 


449 Z52 AMECSOp 

360 129 AM, 

355 195 M*rte«nCon>L_ 
•501 205 lAngBa tec Home 

75 33 AiMolltd. 

155 68 ArndWtlOp 

570 142 lAfetudGraplfe 

402 186 Wrota. 

442% 235 BPB laJLjOp 

310 97 6nge i MgeBrtdi_ 

94 31 kJkjlBeeJlOp- 

290 73 UMalOp 

252 140 BmaOwlOp— 

*322 160 Beflwa 

186 76 WKMndilQp 

132 17B BcrtfierGioop — 

Mb S Ben.Bm.70p 

675 136% Bfeddepa* 

579 289 SMCbdra 

248 120 3 — *-1 

3U 220 3B8EA 

250 66 Brttfeh Dredging 

148 76 BnaaHlos. 

38 U Im&Hriate 
204 US CRH 

in so aunadinwiik 

373 182 CndMSp— — 
79 23 VOKSBdHterGfP.. 

184 92 Mi (Oorta) Sp. 

278 150 CndtrGnap— 

•387V UO C«p»(F35p 

387 204 CoMnCn wi . ... 
402 U9% CanreWePnpi — 

291% 138 CnstNfcMlfe 

150 83 l»5teC«.04AlPI 

118 a ErnkrUmsllfe. 
281 129 Da*2j(feM.NJ_ 

U% 2 

ZU 73 KBC50P 

42 19 Edmcri HMgs Up - 

258 135 Kptaieranlfe. 
Z73 113 EfWi ■■ -7 ■■ . 
215 111 KieCmtndtai.. 

335 140 FttMtrlfe 

310 116 fettled Modogfe. 
182 85 FUaGmUlU 

UO 92 iaWfonlSp 

200 135 ERda&Dmklfe- 
llB 55 Sft6sttendT*lfe- 
50 346 SkaapIKOUpu. 
335 161 HcntanMt Up- 
373 171 HmmrnGnm — 

151 71 HtMw5tu*ll0p. 

£4U%lg0S%On Upc LnSOCB-W 


44 +1 
98 +5 
351 +2 
194 fl 
W — 
244 +8 

90 

375 — 
8571, +7% 
173 -2 
275 — 
146 +13 
U4 -1 
15% +1 
330 — 
US +15 
223 +15 

75* ...... 

Ill +4 
197 +7 
135 -2 
257 46 


70 RL 

224 +2 3 

• 0 . ..... t 

111 fl (MJ 

n — it 

14J — u 

177 42 14 

133 -2 5 

243 „ 4 

m — k 

92 +4 4 

1« -1 K 

200 — 12 

70 — « 

410 6J 

240 — fii- 

264 -1 fl 

97 +1 « 


1121 ZJ 50 105 
75% 45 3.4 HU 
481 12 6b 188 
lib! 51 08 37.9 
iL/41 « 64 * 
flb 22 21 2t6» 
131 * 15 4 
U 25 35 133 
162! 3.4 35 115 
(0.73 « lb Z7b 
11 43 35 85 
|L2 15 15 — 
692 lb U 103 

81 4 58 4 
155 3b 48 75 
9 21 72 L4 161 
WU 11 45 253 
Mb9 28 lb 3L4 
*115 3b 44 85 
Ob! 0.9 45 328 
15! 4.9 09 325 
141 16 38 225 

2.73 35 35 a9 

a« 38 4b HL9 
31 21 4b 148 
L6C 3b 35 118 

12.73 35 04 135 
141 35 2b 123 
±75 U 18 - 
ATS 25 4.7 UL4 
)L5> 55 12 20J 
16! 35 4.9 106 
5%% — 88 — 

38 64 1L9 
31 52 18 131 
ft! 35 17 266 
14*7 28 58 69 
105 19 35 19-2 
181 2b 38 162 
14 j 25 33 162 
51 35 55 67 
41 38 27 145 
141 45 32 9.9 
41 4 60 4 
555 16 55 162 
TZ( 2.9 18 342 
121 2.9 3.9 12b 
66( 4 23 4 
M 18 33 148 
17! 17 3.4 188 
tl! 33 27 14,7 
unu— Q9 — 


00 
SO 

1 9b 

*® 17 

383 203 

87 41 

me no 
m 178 
505 180 
246 86 

150 73 

215 85 
MS 36 

H3 e 
£12% 660 
815 480 
£32% 08 
243 105 
240 100 
280% 179 
*1W 92 

523 314 
•690 172 

216 % 
□4% 580 
378 225 
470 345 

•DM UO 

126 48 

184 85 

378 ie 
202 98 

131 71 

67 32 

*4D 205 
29 126 

286 167 
206 UO 
180 46 

43 38 

190 108 
315 ZU 
498 193 
«7 276 
270 135 
*232 86 

140 72 

1 IDS* 53 
416 213 

28% e> 
sal » 


44 1 9.9 61 .47 

35 36 11b 1?5 

2b 60 98 256 

20 35 198 348 

— lb — U46% 

♦ 2b 4 Ur 85 

4 1.9 4 Zfl3 100 
U 48 162 35 5 

2J4J12.9 191 38 

--- 378 135 

JiUa.9 W; 

36 2.9 125 60S 

4b 2b 12b 265 

lb 68 128 331 

a ate s 

L9 63 115 275 

* 43 * 35 

17 63 111 127 

3b 28 161 210 

OjlOb) — OS*, 

4b LB 1168 13 V 

a a p? 3 ^ 

51 11 124b 63% 28 

61 20p57 +U 215 

■" I I 19? s 


U 35 14b 

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2 A 2b |2L6 
47 U 255 
25 1 19 243 
L638ZZ7 
78 1 — I — 

27 2b 19b 

68 12058 

69 22 MS 
U 57 166 
16 15KH7) 

4b 1 2b 125 

25 151 lift 7 

28 3jSl 


♦ 18 J 

41 U ZL9 
2b 35 149 
38 ID 318 
28 27 20.9 
U 62 13.9 
U U 04 
28 44 131 


415 215 
1M B 
220 138 

ltff 5 64 

TOO ® 

^ IS 

355 1M 
830 <36 
'236 m 
5S 258 
355 241 

480 305 

are 135 

531 Z75 

339 189 
3M 143 
577 372 

481 227 

103 35 

198 75 
500 295 
171 U 
155 51 


167 92 

355 224 
1*6 56 
55 13% 

765 387 
*46 7 


46 23 
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31 33 
7b lb 
4.9 21 
11 2b | 

68 18 
10. 64 

32 18 
♦ !-*[♦ 
42 L3I198 
38 60 82 
• M f 


1987 

n* Ln Stack - 
35 141 MteCanfEtafe. 

118 48 MamMs 

498 2 £6 SM CRUSH*— 

313 160 UnckW 

51 15 Sdlq>fC.HJ_ 

*54 138 Scare fata. 20p_ 

m n >MteriiOp 

ZB9 139% BnaMferioBt. 
•278 140 fenfcytaattt 
*01 34% Skbmood Hodge. 

365 135 5oottln*srrt«_ 
450 148 'rtakwheD , 
72% 15 Sn»«Hk___ 

45 6% BriXsi SkSNplCk 

190 72 pdaSHMcSSa 

34 23 StM^lfe. 
66 26 Brake TM5p— 

345 335 MM^20p 

94 27% CJ.11* 

260 88 Mrife. 

210 87% irdoteSlU- 

ZOO U1 ktaonUp 

46% 14 tatanfiratfe- 
176 HQ 3tttaA&!«L 
895 583 Chewing 6ran5( 
182 U4 DobBV.Mbffei 

•» 23 IriayHBrt 

335 125 U9MSon50p- 

845 563 Cnhent A)20p 

281 103 MastrklQc— 
■m 100 Mc(WmJ2Qk- 
2M 102 Cooper (Frilfe— 
1Z7 57 tankeGrew 


153 1IB 
176 56 

239 154 
321 196 

705 250 

360 100 

*217 33 

138 47 

306 178 
138 53 

93 58 

148 46 

81 33% 

144 95 

<34 2» 
178 Ml 
580 701 
165 95 

378 220 
246 127 
0 38 

630 377 
lU 79 
234 93 

115 40 

*2DB S3 
137 68 

282% 143 


*-• tat I TO 
- Net (dr Br*s Pit 
LtrtZb 12 167 

— 11753b 17 9b 

— 2362 Lft 193 

— 4&#2Z 43 023 

TZ 16634 23 *3 116 
4b .13319 4b 10b 
fl) 10527 34 166 
fS 96752b 62 82 
2 -- 13441 32 87 

+20 3444 19 149 


13 zi am 

07 12 — 
21 5b 10.9 
29 40 120 
27 34 14b 
3b 2b 134 
26 3b 13b 
3b 37 lib 


INDUSTRIALS— Continued 

ktaMS Irwlsf 



115 +1D 
165 .— 

199a +1 


kt ICtalsnlKE ! 
Cft 11 4.9 69 I 
4251 29 35 115 
038 3b 22 207 1 
20* 3b 3b 77 
TU 2b 3211M 
71 37 3.4 1100 
165 lb 65 03b 
iOC 27 411125 


INDUSTRIALS— Continued 
[J Stata InfctMJSllJBJfU 


*348 132 
HO 126 


32jlb(23b 


. 9 

360 — 
400 +15 
30 

«««♦* 


sn 

Mfa9.10p— 

wtdta. 

DtPKdflaaSp- 

i&fc: 


205 93 

358 157 
124 56 

174 90> z 

216 67% 

63 32 

54 24 

235 89% 

m 51 
260 09 

389 222 
197% 75 
118 67 

312 189 
75 30 

278 151 
215 69 

157 93 

199 65 

63 19, 

201% MO 
368 215 
*» 88 

157 89 
99% a 

303 75 

92 40% 

645 287 

2U 107 
223 124 
£38% OB 

158 75 

73 21% 

*75% 38% 
4CS 196 
163 SI 
341 149 
SO 137 
5U Z75 
472 213 

213 77 

190 90 

207 140 
950 668 
238 lU 

•200 a 

144 65 

655 197 

214 123 
ZOO 78 
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471 257 
*267 122% 
-73% 31% 

» n 

139 62 


Marten Cm*— — 

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jMGrap 

L ea(Ar dw)12%P— 

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91 36 

17.7 12 

GO! 1_? 

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+10 U 23 

+3 3b 03 

+2 3! 13 

+5 1! 3b 

-2 U 2b 
+4 Sb5 12 

-1 1131 22 

+1 141 2.9 

+5 TUI 2.7 

121 11 

+2 tlObS 24 

+5 162 2.9 

+2 hU! 43 
+19 tl7J 24 

— 33 ♦ 

+5 1*33 Zb 

¥3 iOU 20 

38! 23 

+6 161 2b 

+2% Fl! 2b 
+1 40! 2.9 

+7 V7X 23 

26 20 

+2 131 20 

s+23! Ob 

fl 13 12 

__ 12 L* 

-2 14 19 

+7 21 22 

4! 6 

+12 11 ! 0 
+1 1*1! 43 

+2 16234 23 
+7 #94 12 


260 +3 
247 +7 
38ta +12 
38 +2 

m -2 

MB — 


tS -2 i 

200 -3 f 
305 — L3 

120 T1‘ 

132 +12 Zj 
143 — kl 

97 — Fl 

295 +13 4j 

201 +7 m 


taHMpUp 

»lhsmoaC6WJ! 


rtcCW.AJlOp. 
-SprtoglOp 


+U 3C 69 
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1_. 16! 23 

+M 022% 23 
-4 125 22 

-Z hl2l 17 

— 12X 24 

+5 11! 22 

57! Ob 

-1 153 23 

— 15b 2 1 

1653 42 

+1 181 23 

+1 136 lb 

+5 5b 14 
_.. 015 3b 

-15 BUR 25 
+12 b 4X 2b 



L3X 32 69 14b 
tb£ 63 17 13J 
LS 4 33 0 
Ob! 52 ZO 133 
OS 14 1* — 

8% - £0 — 

160 <3 20 15b 

315% 43 19 23 
L7i 23 37 152 
Ifc! 45 18 S3* 
166 24 3b 15b 

125)16 23 114 
9J 10 52 12b 
M2J 38 26 112 


R zra * [34 [ « 
L4ffl 4 37 * 

044d —20 — 
a3_ 34I — 
«3 14 4b 
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53^ 047 
134 lb 19 
1U9— £8 
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*323 34 
£317 42 

mu 

L3J] 2b 1 4b 
1196) 13 1 *5 
6«3b(2b 
6138 55(13 
FOdlQbOb 
46218 23 
1840 40 27 
.03 44 15 
L2424 14 
110X123 43 
60 21 1 4b 
9100 24 42 
124+15 1 61 
04—65 
55j 16 j 67 
74 * 52 
BOM 3.4 (47 
1174 24 74 
L6a2b[60 
601180 
1543b 27 
£4 33137 
+319(43 
*6371 3b 1 2b 


185 {105 

W (Ul 


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t 2 ... ISbIib lb (Mb 

+3 271+0 67 > 9 4 

-22 +4 *32 33111b 

_.... 14.0 3b 3.1 147 

07%%j 23 9b - 

-2 L37J ♦ 50 4 

«»sii +7 94 

+2 1*6J7j 69 55 723 

-4 12*23 28(223 

#41* U t|b4 

1+2 Hi 13 2.1 lib 

+20 fUUjL7 61 127 

+4 14X8 33 jb 1U 

.... tLSSbiUlSb 
+25 1*23134 24 15b 
+3 NLSjZb 20 361 


292 +21 03731613b 


27 32 160 
80 11 155 
34 31 1X4 
13 33 12b 
3b 25 160 
2b 23 161 

— 53 — 

— 102 — 

— 84 — 
30 3.9 65 

— 44 — 
2b 37 137 
ID 4b 1Z9 


12 Q.9 — 

£9 45 Ba *8*1 13 
"S3 136 50 

Z _ Z 2+2 108 

12 22 364 Jg- UI 
M 34 85 “J, 

Sb 27 9b 2 

03 06 — S ■ 

22 53 117 If® 66 

— _ _ 198 79 

28 39 125 IX 

32 23 173 S 

62 3D 20.9 J* 

39 2b 108 09 

23 4* 123 25 5* 

19 53 132 S2 S3 
* 37 • MO 127 
66 63 13b 366 204 

24 34 103 V* 

9 “ i’ “ « IS 

. 390 155 


•n mo SiiWap'—^ a 1+2 tj7S3b w[ttj 

*<n 1 220 P-— t 268 -3 R13J23 .59 153 

M3 la Srt^w&ZZJ 168 I - 1278134 29il7.9 
ftrSdStalMWO see total , 

185 life BteMKaGmp «3 -7 Mbfjl 3b! - 

Wjlflt jwtouw tWOylfe 165 +5 Obj- 

fff 8 £13 ...... 16016 lb (240 

MB M GStarai^Z m +3 221+8 27 9.4 

240 105 Gn+SlITJ L bMI' 1W -22 +4* 32 33 lib 

Z50 153 Bte^D&naeJfe 175* -.... 19X3 3b 11 147 

07*%j23 96 - 

HD 16 lMurttnls^— . 53 +J -J — — — 

» 75 » -2 1*3 ♦ 60 0 

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255 m SkScknaief— - 15* +2 1*61^69 55 723 

213 76 MtaewclOp — 128-4 126 23 28(223 

109 2b RB»4<U*«S*>hlZ% « .— “j - - - 

tBO 90 320 . . _ 4— l — — < — 

92% SzAxCMs B .. . A 34 

247 106 MtanfabCraelfe W +2 UjU 2.1 lM 

394 177 tagwCradUt — . 224* +20 Mfltf 17 61 127 
47 14% HfarrhOnFAa)*. » -1 H- - — 

288 120 Hm &P lop-— 1** +9 14X1 35 3b 111 

278 UO S&CCtelS U* — 17 169 

3 3 BSSC2: : iS :f S^i2 15 

a & aassed^ s Mss® 

m 46 5Sn_Z_ZZl 65 _... *12 '19 25 18b 

+6B 2+6 SSwZZZZZ 339 +9 04X814 57 127 

m £b ESasTZZZ 258 [+3 17310 IT 161 

1317%; 0151 K£9pcC*»B7-42- □»*-«% - D7 - 

935 . 88 WoradCrp 53S +10 t+flOb 18 - 

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*W la Mrt)8tacM+85c>I 1« +5 ' l+i2 23 *8 153 

£ zg £ is flSii S£ 

215 117 »PCTSrplOp_^. 160s . .. 3bj lb 33 U« 

125% £M% PUH "S' 5k 25 £18% +1% MJM%| Zb 3-2 114 

225 So HtaerSesenAia. 155 — 4b 14 133 

276 128 Pacific Drtap 303- 167 +6 01i5g * 3b 4 

■360 45 iPadSeS+lalOp— 245 +7 git lb Ob - 

9(8 417 Parker Kned %' 950 +5 MM *3 41 

•430 184% MdMdCnwCta- 261+6 3X SJ. lb 169 
44% 12 tPVlODM 15 +% —* 

a a p E**'**- £ E ® 

.ST ^5S»±z S 3 75 

£22 02 PMo-Me 061^2 0JC 10.1 8.1 167 

358 185 PSktanaSIki - 218 7JW27 4b 9b 

ZU 70% Qa. Whtws— - US +7 

£567%£*W NtarbwecteU.. X3S5 05%% - lbf- 
165 61 Plastic Cert. Up— U5 L.. .4123 13 33 302 

•32 6% PtargmSp 17% fl 8 527 

260 100 gPlanalnL - 115 .... 33932 4X> 8b 

290 IB »Ptaa*»lde.50_- 295 -5 ABXlZA 20 260 

5b 21 PtdyawtlOp 30 ..._ B BA 

221. 108 Do-CmPlAa 125 UW - 110 - 

442 190 nprtta 2+5* .... 16! 3b 40 97 

81% 12% pPncyCorp 13 +% -J - — 

466 292 PpwHDeftanSOp_ 338 — 165 15 68 151 

126 85 RCOlfe 85 — . 1391(23 63 lft« 

260 M2 triMMd 178 .... 2.75 4 21 6 

46 20 Ht>saOBSfrn.Uk>. 23 +1 07 - 42 - 

826 4W tadrftp 580 +17 1160 23 +3 123 

528 194 tarttaptaFiaa- 314 .... OltrvJ * 4.7 * 

02% 666 RrcfctttACotaai 737a +34 116927 3!« 12b 

617 20 kdfen 384 S3 43 23 10b 

297 « RndExecHUgvlOp. 1M +10 69 64 5J 42 

133 299 RtedMenatfort- 3584+15 18A54 11 Ub 

S3 MS MetanSecErpSp. 158 a430>Zb 42 13b 

245 141 triiOH 163 -2 IW.9^27 33 UJ 

380 255 lenicfcGirai 305 -J - - lib 

914 400 tatersYlOp— . #73 -5 155)43 lb 259 

88 36%«einwc 50-1 iJ 3b 33 Ub 

180 77 ^krt -ZT- J 131 1 M 18 M 219 

31 S ts£=TlIrn^=l5l= 


+1 1*17 38 HU) 

+1 tin 42 lb (161 
+5 L4.75) 2.9 30 12.7 

*12129 25 18b 

+9 >K«U 57 127 
1+3 17b 3b 37 10.1 

s-69% Q9M- 02 - 
+10 t+XXOb 10 - 
69 23 60X73J 


3b 10 U B« 
+lt, M24%> 26 32 114 
IQScj 4b 14 135 
+6 0U5q 8 3b 4 
+7 git lb Ob - 
+5 360130 41 

+6 30(61 lb 169 

+% -J- - 8 

QU%I — a 17 6 ~ 

mail 27 153 

+4 1*a«Bblo5 73 

4% 60 10-1(0.1 1BJ 

7i»27 4b 9b 

+7 -4 - - I - 

05%% - 10/ - 
L.. . *120 13 33 302 

+1 B — 527 

339 32 4A 85 

-5 183X5 24 28 260 

B Bb 

10% - 110 - 

.... 165 3b 40 97 

+% J — — 

165 15 68 Ul 

13.91) 23 63 1ft* 

.... 275 * 21 * 

+1 07 — 4 2 - 

+17 U60 23 +3 123 

OWM 0 4.7 • 

+34 1165)27 SX 120 

.._. S3 43 21 10b 
+U 60 64 61 42 


eANotailOp. 


m 


10 22 203 
14 68 M.4 
14 83 122 


6£-P. indL mdps.5, 

tl{ ™+ 

SLGrritaFFtUO— 


DC * +4 

252 +7 

M8 

365 -10 


FOOD, GROCERIES, ETC 


574 251 
US W 
3+0 135 
*248 139 
416 230 
248 Ul 
£550 075 
3M 1021, 
254 144 
730 317 
300 175 
1Z1 78 

204 M9 
130 50 

436 24+ 
50 15% 

515 298 
112 41 

273 155 
56 17 

291 U9 i 
Z37 130 
178 48 

283 210 
570 285 
*293 203 
166 8t 
M2 65 
191 90 

405 279 
253 125 
260 146 
SOI M 
UB 75 
•238 US 
375 ZU 
204 93 

300 167 
346 UO 
129 47 

495 270 
•320 153 

358 214 
161 25 

•322 166 

*44+ 271 
55 10% 

440 220 


tat Soft D10p_- 
drtrceMdeLlOP. 

OflGrrap. 

.Brt. Foods 5p_ 

-Fhhfrtf! 

(Fr IDO 

dBlSktayCJ— • 
ttr&CtalOp- 
rOLCJ 


i 10 b 

mCrtraiop. 

MCS.&WJ- 


00.**“ XV 

KtartMMUOp. 
UBw\Kktalfe— 
3*0* Food, 5p_ 

artetya 

tariebSJSp 

kfCareSp- ■ 

EndaodLUSp— 

T+fjriBlrSp 

=WerU05o___ 
fedi Lovell Up 


69 33 2.9114b 
16^27 19 H.9 

m 32 i 30 (143 
M^25 34 160 
fl3 39 1 33 1 9.7 
14X325 33 153 
rowd 36 lb 307 
Mud 4b 1 42 1 73 
fig 50 j Ob 1233 
f lig 42 [ 3D [mb 
778 21 57 Ub 
2J 3bi6 JlOl 
475) 25 1 37 114.9 

-J — — 120 

♦flifl L6 1 62 jU.9 

aaap 

U2 44 16U7.9 
OJLI L4| — 
MU UQM 
6324 3J 9» 
i3m m m.4 
HMN26 UQM 

«3i2 21 Sb 

16222(64 004 

S3u 6b U2 

24 32 32 h33 
14017 67 Ul 
ItiSsb 3b 12.9. 
OS 19 1 64 j 69 



293 Ml ScotltartaWeTS.. 

390 1H SecarioorGreqp 

371 151 Do. *A* X- V _____ 

?!S! s g-sasssac 

’ligs s 

. 955 20 4b-. 151 . . . For -Sauna War 

13X 19 34 ZLO 248 155 taSwpftlraUp- 
1321 21 42 131 120 10 +SrHPoaW_ 

WZ-7 24 64 168 395 205 

a4( 05 LB — m 78 +5beraplHi5p 

152! 25 4b 121 122 77 SMw GmTjZZ 

521 lb 74 122 IDS ZB sST 


U5 — 
82 +1 
-% 

US +10 
123 — 


351241163 


179 22 

465 205 



I . 20 — 
33 4J 97 
17 5b 14J 
17 6b 100 

2b 3b ll3b 
- 07 - 
35 47 65 


25 47 117 
0.9 63 - 
13 41 303 
L9 60 8b 

♦ 5b * 

♦ #2 ♦ 

32 31 13b 


9) 1 *547 (254 


196 U9 
£4511 £24 
361 199 
195 58 

380 175 
420 SB 
210 170 
51% 15% 
286 108 
185 100 
226 UO 
365 127% 
283 140 
390 241 
*63 35 

3ZZ% 180 
£UU 675 
226 90 

87 21 

380 190 
*321 143 

•51 7 

2«r U6 , 
590 258 


ntaGfplfe. 

nde*10p__ 

rrnwi - 
giOdgiSp — 
flftwlOp-_ 


kHadiABV. 
rPKA60c_ 
rtWdgi 


141-7 

212 +8 

•75 

2 S 8 

315 +29 


166 +10 
UO -5 
105 +2 
173 +5 
103 


KLi 2.9 25U9J 

L7UZ7 35 17.7 

+9 —4.8 

-5 35 * 2b 4 

+5 — 191 

1-2 +079 — H - 

+A 08% 3b 19 M.4 
1+7 «C 23 43 134 

1476 23 4b Ub 

-U 30* 1J # 
681 2.7 «9 94 
£% QSL2I - 3.7 - 
3! *3 24 113 
-2 W.l 13 21 190 
I.™ 1107 53 05 529 
-15 run 5J 06 474 

— F5A24 4b 200 

— MX# 20 34 - 

-5 1209 31 U 39.9 

— L2S 2b 2JBL5 


24 Zb U9 

13 7b - 
7.9 19 9b 
36 2fl 137 
10 S >-9 
36 4b 8b 
23 34 179 
30 24 180 
15 77 1L5 
23 27 19b 
— 39 — 

022 43 107 
21 37 18b 
43 19 14b 
45 13 Z33 

14 41 239 

23 18 284 
103 04 3*1 

3 07 68 b+0 
3J 39 7b 
140 13 Z17 
H 23 * 

« ♦ 64 6 


taalLwfe. 

Start 6rp.l« 

•BlZOp 

tdwnrtmp. 




809 5B 
16B 55 

195 107 
435 150 

377 201 

378 206 
95% 44 

330 205 
193 81 

199 122 

300 158 
•07 28 

200 60 

3 tn 239 
104 27 


109 <2 

9+4 560 

H5 51 

209 m 
£496% 062% 
<43 SO 
S54 228 

206% 89 
135 +7 

26S lfil 
£28 £U 


kzkod Froze* Up. 
tasrtUKfcUfe 

nabnvbJL) 

KHftlnc.SU»_ 

KwftSraiOp 

L»Uoh«Fmp_ 
lMtWmJ20c 

Btta ici. 

MrtTradaSo.— 
liaritfnlWJ 10p_ 
Wdrtftftrert 

g^Grtwlfe 

ritottartiteMp! 

i S»fc 


Ificgtai Heeds fe_ 

^"*Srte5Dp____ 

rtrtaiyUJ 

5bKRB(0irtslrt)_ 
Kta»Crarti*5p_ 
KrteitadHWgs.- 
rc.iL4.n__ 
rarao r RaL20i — 
Ttsx>5p ______ 

Do fecaU 2QQ207_ 

Untott- , 

WtedSsD*tj__Z: 
Do. W»Ti*a Q989) _ 
0t.Wmat>a9n)- 
wiBMt PttfempJ 
MtamartDF&j 


900 310 
373 1+3 

295 138 
£18% 990 

377 207 

309 97 

378 236 

310 192 
290 160 
288 145 

296 US 


29 31 177 
41 09 610 
23 44 109 
3L4 21 194 
2b 32 161 

23 LS 400 
07 J 243 
2b 47 12.9 
6b 17 69 
4b 21 166 
— 04 — 

24 54 105 
23 5b U4 


15 Sb 167 
1 25 1 26 1163 


HOTELS AND CATERERS 


US j 

90 (+3 




« u ipmnni— . •» to 

24 40 U8 5S 3rta++ — — 350 __ 

17 35 204 M SfiST-— ^ 

3b 2.9 mo T* . 7 l awnr S p .. — 28 — 

♦ 27 • *Ta*F«e5p 378 

B ’S :z 

a- *s ^ i 

— - 35b 300 U3 IhWMtklm. 285a 

2b 43 147 175 73 rtarao* T-Ltae5p_ 76 +3 

15 53 144 310 10B niTABLSO 140 HO 

— — - If5 +< »TMey(EUia)Sp_ in 

— — — -206 133 fTodSp 253 +33 

37 18 114 320 D3 l«eldK(F0J5p_ 205 +1 

69 2b 505 1H M DoSbpcCaCtRsPrf, 113 

♦ 5b * 410 235 rootafi fR-WJ 390 

24 5-9 97 265 126 to* 195 

30 24 115 +£ »7 rnfabar K*.2Qp_ 342 -5 i 

61 15 113 298 183 rrwpwtDe*. 210 +5 

2b 5b 103 83 13% rnnH0d5p 58 +1 

24 5b 103 M 35 So-Vtarani 37 +A 

♦ ♦ » « rrtartj>i«2fe_ 120 __ 

[40 lb ub ,'g « — 

*v H let 580 158 rffrtcTuaw 205 i'u 

24 160 ?2 ^ JDOHtajSlOp 170 +3 

Tc o£ ir? 178 *9 UnfemUp 173* 

■ft fn ' 7W 415 *^»Sp_____ 410 +7 

H S QH% lla'.NVroz £99 +3% 

25 W 12_1 133 55 umMi cc 

’H K ? *** n UedGaaraneSp 25 -1 

M 2S 131 M6dtadP»ta!k|U#_ 235 _ 

H ^ 1» dMn&pbOp 158 +2 


-4 Hi3J 32 24 169 

+46 «S% 65 01 - 

+2 MOTi 22 30 119 

+5 — — — — 

— MX L9 3 9 161 

-4 9979 24 61 *<831 

L- u® +b is aj 

.... t*4X 30 1.4 268 

— *4639 14 43 OBJ! 

-2 12X 53 12 ZL3 

— «X 3b X 164 

— Ut 3.+ 14 227 

+3 06 8 11 * 

HO OBi 23 4b 4L5 

31 2b 4J 15b 
+33 *g3J * 21 9 

+1 3X 62 20 133 

— 5b% - 68 - 

07! 3b 31 123 

5J 23 3b 16.9 
-5 113b 15 60 UH 

+5 17! 2b 4.9 121 


ai 513 145 

IBS 60 

*6 » EL 

r 09 £22% 

_ 137% 51 

_ 571. 232 

48 5 

81% 36 
188 96 

106 33 

490 265 
■990 245 
SO 43 
96% 29 
265 116 
38 UP, 
347 190 

168 106 
mi si 

239 146% 
700 413 
253 77 

250 55 

90 20 

305 M5 
97 58 

307 1U 
187 UO 
422 102 ] 
182 109 I 


taper H—d fttfe. 1636 

r«batallaABFIibO_ £2T- 
ratetfori Glass 5p_ 70 

feOcena 348 

Weteac7p 31 

(ea inbotilo 5o_ 41 
JjyW* Hc»5Clp, 338 
Wwn*cAjooo_ 41 

ta6rt«.Aag85p_ 290 


KfiWa«HldB.___ *40 
0e5feeCwWMPf_ 123 

WBaoaUj: 41 r“ 

WteGrap.. ... 265 

KSfcsr }S :| 

MrwsterMp-IZ ISO 4 
ItaibtadMtAblta. 46 

% ~ 

^‘JiEEl§S fci“ 


|UD6« 20 15 22.7 
1M! 41 08 3+1 
t+X L6 27 Q&3> 
lb * 15 0 
11 5-1 0.9 3U» 
nil21 29 3D 13b 
0766% 5XJ 28 13.9 
22 31 65 &9 

»3X 30 19 163 
37 29 3b 13b 
*4JB * 17 * 
IS 3b 21 162 
R266 27 29 216 
013% 84 30 37 
0662% 2b 40 7b 
281 43b U 3U 
035 4.4 15 119 
U 24 33 15.9 
4! 26 47 113 

60 U 150 
101 23 40 123 
02 — 05 - 
mu 33 25 125 
167! — 67 — 
tU 33 Ob - 
H4b7 29 23 140 
5%% — 50 - 

+664 26 93 05 
MX * 44 * 
£! 2b 14 19.9 

47 13 215 
27b 

BUS 28 lb 319 
2b Zb 60 103 
2£ 3.7 14 2L4 
2405 3.9 32 10.9 
K73 4J 44 9b 
33 ♦ 4b * 


INSURANCES 


INDUSTRIALS (Mfscel.) 


a* at 
38 13 

3» MB 
610 207 
113 38 

•370 ISO 
240 112 

680 MO 
735 190 

is a 
a 338 
m 198 
650 335 
230 U2 
160 CO 



rt+KLUJ 36 
HJft.De. if 
T«i0ta_ SID 
rtwfe- 590 


♦ !»|* 


ENGINEERING 

tfefwlfe— J 109 1+4 I + 



109 +4 
251 +1 
9B 


18 40 140 
24 SlfllO 
2b W 137 



133 __ 
292 __ 
03 +% 
159 +S 



35c— 300 
life— 125 
755 

15p-Z] 112 


3b 20 133 

♦ 21 * 

25 7b 70 


15 12 32b 

22 2b 19.9 
« 29 * 
21 54 12b 
30 32 9b 
««« 

23 51 Ub 

20 25070 

r 60 * 

10 t 13b 
4b 28 11b 
37 00 150 
18 3.9 ZL6 
L9 26 mo 
07 60 366) 
26 25 190 
34. 11 36b 
♦ 001* 



21 LL 457 

— 37 - 

— UJ — 

22 4b 137 
34 21 180 

— 50 - 
00 LB — 

— 50 — 

— 20 — 

- 0.4 - 

- 48 - 

- 50 - 
lb 91 M3 
21 44 M.9 
27 67 13 

- 40 - 

- « - 

— 41 - 
2b 5b 94 
lb 4b 13b 
27 45 105 
21 10 96 
19 80 61 

- 44 - 


^ 'A 


. t • 




7 
















































Financial limes Tuesday November 17 1987 


LONDON SHARE SERVICE 


M* Law 

m 

345 

& 
m 


INSURANCES— Continued 

M f Pifc* M ML 


SB 34 
239 149 
US 50 
263 133 

234 12B 

221 94 

175 MB 

235 87 

U3 43 
m 53 
617 361 
220 142 
228 110 
290 88 

610 340 

48 

135 
337> 

99 

404 
•454 
88 
540 
256 
188 
6» 

170 
ITS 
55 
*117 
409 158 

136 73 
166 1X28 


294 150 
772 478 
632 261 
185 83 

61 19 

127- 36 

£4hJ £22 


305 10 

za 102 

129 10 

300 IB 
•40. 247 

795 4» 

243 joi 


TH 

Ml ME 

55 LO as 
U 08 — 
52 2.9 6.9 


52 U 1(19 
— 7.7 — 
25 lOlllb 

= M » 

£6 1U 
f75 — 


260 . IB 
la 63 
675 377 
415 200 
633 222 
6B9 320 
285 IBS) 
■914 411 
*7 43 301 
{42 123 
272 131 
<30 ISO 
<30 310 
515 315 
418 1371 

765 340 
205 W 
802 435 
395 205 

u$ ua 

226 105 
on 4oo 
706 250 
290 159 
198 113 
985 470 
682 365 


90 <5 

367 M0 
3M 69 
585 318 
358 Z73 
145 40 

265 139 
140 95 

Z1B 103 
352 191 
930 335 

•484 185 

94 35 

326 161 
•m 142 
928 473 
930 m 
260 140 
300 95 

2*2 135 
•220 S 
153 91 

70 a 
149 B 
310 172 
85 38 

2a m 

SOB 302 
Ml 108 
U» 99 
OZ*j 176 
•03 210 
46 268 

m ua 

207 ua 
470 290 
99 37 

l a « 

46 US 
•250 149 
46 Z79 
530 241 
« 235 
MO 247 
UB 16 
*512 MS 
194 SI 
123 SB 
Z71 IS 
960 68 
270 W 
ZB X 
302 IB 

an us 



l M 1 , i 


£267 
M 
am 
2U 1120 
54 11 

320 M6 
112 1 40 


UD S 

8D 26 
218 107 

129 6 

Zb 6 
■£65 £34 
752 413 
950 505 
362 197 
20B S3 
IS 56 
416 285 

416 2S5 
422 134 
£207V 
231 

ioe 
160 
157 

in 


76 43 

110 67 

98 40 

127 70 

140 65 

77 35 

Id 38 
*05 50 


860 840 
£24 as 
515 228 
430 213 
£2412 £U 


IX | » 
323 I 15D 


3*0 133 
618 SI 

£20 m 

585 252 
391 13b 

aM boo 

174 8* 
IX 72 

60 X 
90 271 

175 96 

180 15 

£20^ 975 
721 20 

538 283 
07 994 
3*3 147 
3B a 
EUh 995 
914 322 
343 154 

9*5 257 

OBS ns 

395 1B4 


SOB no 

£1» 631- 
725 170 
Ol b» 
*70 199 
35D 122 
380 100 
650 280 
£1A 611 


tm £52 
EU* 475 
475 300 
£W, 490 
00 490 
OW490 

310 [DO 
a 14 
_ _ 30 I 7 

JU - 160 63 

20 — 797 467 

— an 4oo 

MM £80^ £C 

M — £76 £28 

23 — 64 14 

<0 103 160 « 

51 « OS* 668 

- — 03 775 

- 1U 04 670 

23 V— -75 13 


U U IM 
55 22 133 
32 I U 53 
35153 7J 
23 1 55 fl23 
73 9 
33 — 
25 12.7 
62 043 
231213 
44 93 
4.9 9 
13(32.9 
56 92 
44 16.9 




0381 9 123 
Q*20l 19 194 
QMOd 13 13.9 


J Cater bUom far coamlontfsljnKsntt now tasking far dMdeods 

X teerdMngtabw'l^jiurowMctaMvaitonBricfbrdbUeadJt 
a futiue date. No P/E ratio uafly (raided. 

B No narsntia. 

BJFr. BrSao Fr so. Fr. French Francs. « Yletd based on asnmpOon 
TranrUII Rato days tatctoiagd i id l l maturity of sack. AAuaallstd 
di vidend. b Fames based on prawect is or other offer estimate, 
c Cents. 4 DMdend ram Md or payridc an jmrt ol capital, eoter based 
os dhridaod on hill apitwia Reoenptkai yftWL f Flat yieM. g Assooed 
dWdeod and yield. h Assumed dMdend and yield after scrip taot- 
J Payment frcn capital sauces, k Kenya, at Interim Hgaer tin 
rnmdoas total, a Rights l» pending, q Earrings based on preliminary 
figures, c Drridend and yMd exclude a special payment, t Unseated 
dmdenfc com retoas to pevhws AXdeml WE ratio baaed oa latest 
amoal earnings. a Forecast, or estimated an n ualise d dM dend rata, 
cover baM on previous year's aaratag*. *Sab|ea to local tax. 
a DMdend cover io neats or IX times, jr DMdend and yield based oa 
mmgm mm. x DMdend and yield Mode a medal payment: enter 
does no* apply to special paymem. A Net dMdm and yletd. 
B P re f e re nc e tntWend passed or deferred. C Canadian. E lllnfaiun 


f — [ ®OOJ35fK7 
Cl *1123 67 197 


d - - - £U 812 

0.9 1 23 Klfi £366 £71 

_1 _ _ £2000 

£a 9 13 * 5« 



£20 ao 
£H« 545 
980 247 
a* 4oo 
£77»| 05 
U « 

£22 ao 

915 300 
115 X 
HM 426 

158 X 
21 * 6 
398 IX 
85 17 

10i] 4 

80 14 

44 9 

US X 
80 IS 
m * 

307 X 
28 6 
130 5$ 

250 90 

90 24 

*513 158 
136 X 
IB 22 

25 7 

42 7 

38 8 

57* X3 

177 38 

8 J 

26 5 

155 SO 
232 99 

•538 140 

34 10 

148 29 

29 9 

2*0 60 
60 25 
63 13 

968 140 

121 a 

300 80 
106 22 
600 80 
67 12 

A 3 
« 4 

B & 
Z75 39 



900 U-38 
£74 L— 
Cl H 


tauter price. F Dividend and y4aH based on wmMCtas or other official 
eahna t rs for 196687. G Assumed dWdand and yield after pending 
icrip aadto rights tame. H DMdend and yield based on prospectus or 
other official estimates for 1906. K DMtood aad yield based oa 
prospectus or other official estimates for 1987-88. L Estimated 
mnefflsed cMduA cater and p/t based « latest anoual earwigs. 
M DMdend aad yield based on prospectus or other tffidaleahnmes lor 
19858b. M DMdend aad yield based on prospectus or other oJftdal 
e s U nnt ts for 1987. P FTgares based oa prmpcdut or other official 
estimates for 1987. ft Grass. R Forecast aonaafised Addend, cater and 
pfe based oo prospectus » other official estimates. T Figures assumed, 
w Pre feme figures. Z DMdend total to date. 

Abbreviations: mat dhrldentt k ex scrip isne; a 1 ex rites n ex al; 
dime capital ithaRalnn. 


REGIONAL & IRISH STOCKS 

The foOovtlBgls a selection of Regional and irthoodci the lattm being 

Hun t ed m Irish currency. 

AAaqrlnt2Dp | 73 I Fla 13*9702 |£mU_ 

CnrigARoKO — 63W -25 Aim* 280 +X 

FlatoPta.5p._in 88 +3 CPI Hite * — 

HohUasf&p I g« , l- | » torOiftt fa... <W — 

HNICft&tO 98 ™ 

Helton HUgs. 48 — 

IBtSH , , IrhbRoaes 1^8+0 

FtadnV6198BJa0Bd — I North 325 — 

NaL94i%B4IB9— J £9»il — I Untdae 380 — 


TRADITIONAL OPTIONS 

3-tnooth call rates 


71 K6.96 34 19 

320 *10 022% 9 113 

31 *2 05c — 66 

za *26 065c 7.7 L2 

a _ etc * 65 

46 *6 — 

1* *r - - - 

10 _ 

17 *2 

61 -1 

t 9 := = 

60+10 — 

61*2-0 Z3J - L9 

260 « — 

13-1 — 

a 

10 — 

75 

*7 

iff 1 ?? *flia a£ 2 a 

a el - 

90 1-10 

39 -3 4 

200 

15 *2 

3-1 — 

9 rt — 











































































































■ar 


42 


Financial Times Tuesday November 1? 1987 


LONDON STOCK EXCHANGE 


S' 




Arm* Data Data 
OptiM 

Dram- Last 

OctS STs I 1 vT 

Net 1 ) Maw 19 Nm» 

Nwl3 Dec 3 Dee 4 

•Mgw ttw imilny may taha placa tnm 
SOCta two brntne wdi iw ■*■■«; 


Day 
Nw 16 
N*» 
Dee 14 


THE UK securities markets con- 
tinued to focus their attention on 
the chances for early action on 
the US budget deficit, and also 
for a meeting of the G-7 Minis- 
ters. Towards the end of the day, 
doubts gathered over pi 


Thin trading session brings loss of early gains in 

equities but rally in Gilt-edged 


for both, causi ngt he rapid 


nation of a 56 FT-SE point gain 


In equities and stemming a dull 
snt bonds. 


trend in Government i 

The session started optimisti- 
cally, with share prices advanc- 
ing sharply as a firmer dollar 
checked the rise in sterling and 
helped the major exporting 
stocks. The City awaited with 
confidence last night's speech by 
Mrs Thatcher, the UK Prime 
Minister. 

But the early gain In the lead- 
ing equity index was flimstly 
based, with only a handful of 
major stocks attracting signifi- 
cant turnover, and many sec- 
ond-line Issues hardly tested, 
according to marketraakers. 

The gain was stopped when 
the FT-SE 1734 mark - seen as a 
resistance level - was tested, and 
the market then began to slip 
'back. The pace of the fall 
increased in late dealingsas the 
market reacted to agency reports 


ened and the market waited for 
news on the G-7 front Losses 
ranged to point before prices 
steadied on rumours of a meet- 
ing over last weekend of G-7 offi- 
cials, perhaps to arrange a Minis' 
terial meeting, and also of 

§ tanned cuts in US and West 
erman discount rates. 

But retail interest in Gilts was 
thin, and price movements 
reflected little more than posi- 
tion-balancing by the market- 
makers. 

British Petroleum ‘new* 
shares were massively traded 


FINANCIAL TIMES STOCK INDICES 


with almost 250m shares chang- 
hrough 


of remarks by President Reagan 
i Few 


ing hands - much of this thro _ 
the inter-broker dealing system - 
the LDB. A leading trader esti- 
mated that a stake of some 70m 
“new" shares, or between one 
and two per cent of the com- 
pany, had been acquired yester- 
day. 

It was thought that the shares, 
believed to have emanated from 
the US as underwriting stock, 
could only have gone to either 
the Kuwaiti Investment Office, 
which recently acquired a 4.9 
per cent holding, or to one of the 
big Japanese investment houses - 
Nomura were offering the best 
price in the market for much of 
the day, but so also were US 
house Salomon Brothers. 



No*. 

16 

No*. 

13 

Mn. 

12 

No*. 

U 

No*. 

10 

AW 




ei’ia 

90.99 

9252 

8X43 









192U 

13175 

lVRI 

12900 

1246.9 

12785 

PflUm— r . 

2882 

2882 

nojf, 

2664 

am 

302 A 






4.97 


Earobisp YKL %OUD 

1X51 

1140 

1X51 

1X80 

1252 

1021 


l n ft 9 


1 A 69 




SEAQ BarpafeB (Saa) 

36542 

<2229 

SL3B4 

39,730 

39569 

2M51 

Eij«ttrTBnw«r ttm) _ — . . 

- 

130343 

169X53 

139924 

156645 

98327 

Btaitai— 

- 

51482 

58432 

qni 

42,132 

36^958 

Shun Waded OnO 

- 


80M 

6534 

7135 

43X2, 


1«7 

High 

Law 

9352 

CB/S) 

9922 

(15/6) 

19262 

06/7) 

4975 

(4ffl 

8X73 
0900) . 
9023 
(20) 
12324 
(901) 
26X6 
1601) 


8tw* Cnmpnwioii 


n* 


12X4 

WflflB 

USA 

gb aim 

19262 

06007) 

734.7 

05003) 


49X8 

cw/ra 

90S3 

onrush 

49A 

auwm 

4X5 

(26/10/71) 


S^E ACTIVITY 


brita 

No03 

Na*J2 

UR Edged tevriai 

1304 

3362 

26364 

1662 

2984 

2700.7 

1395 

3784 

34232 

1705 

2895 

Z732.9 



Sm EOjed swgria ^ 




Opening 


10 ajn. 


12 ajn. 


Noon 


1 p-m. 


2 p-m. 


3 p.rti. 


4 pjn. 

1340.1 


1346.7 


1349.2 


1357.7 


1362.7 


136L5 


1360.0 


13533 


Day's High 13652 Day's low 13252 

Bata 100 So* Sacs 15/10/26, Find ho. 1928; (Many 1/7/3% Md tan 12/90% S E AcUvMr 197% * M-M47. 


LONDON REPORT AND LATEST SHARE INDEX: TEL 01-246 8026 


and- touched Wpprior to- dos- 
ing 9 higher at 393p. Norfolk 
Capital attracted speculative 
buying and touched 30p before 
to closing a penny higher at 

- 26!6p. 

issued by leading brokers, before International stocks got off to 
easing to close a net 9 higher at a "good start, but were looking 
231p. 8TC were also a firm mar- decidedly uncertain in the late 
ketandedged up4to2Up. stages of trading with, most quo- 

News that the International tations closing well below the 
Digital Communications censor- day's best Beechmm, scheduled 
tiura, led by Cable & Wireless to reveal preliminary figures on 
is to be granted a. telecoms Thursday, touched 467p before 

settling unchanged on the day at 
454p. Boots, annual results 
tomorrow, managed to 
part of an earlier rise to 


day came into line with those oi 
the bidding group. Vastly 
improved mid-term profits from 
Trlmoco were tempered by the 
board's warning that they 
include the benefit of the tradi- 
tionally high level of new car 
registrations in August. The 
shares lost early firmness to 
close unchanged at 38p. 

Investment advice encouraged 
reasonable buying of Bund, 


which rallied 4 further to IMp. 


on prospects For US tax cuts. 

By the dose, the gain in the 
FT-SE 100 Index, finally at 
1684.7, had been sliced to only 
6.4 points. Government bonds, 
however, rallied as equities lost 
ground, finishing the day hula 
changed. Index-linked Gilts 
returned to favour, adding ft, 
although traders sold this 
reflected a restructuring of yields 
against conventional Gilts and 
equitiesand not a revival of 
inflation worries. • • 

The initial gain in equities was 
helped along by good trading fig- 
ures from Unilever, which but- 
tressed the trend set last week by 
Shell, BP and Weficorae. 

Also encouraging the equity 
rally was Unilever's AS 186m pur- 
chase of Bushells, the Australian 
food manufacturer, a new indica- 
tion of relative confidence in 
share markets. 

Retail shares firmed up with 
the help of the 0.8 per cent rise 
in UK retail sales in October. 
There was little market support, 


Analysts were unconvinced by 
could 


stories that a US oil major 
have been picking up a big share 
stake - *1 don't think this is a 
predatorial move' said one oil 
company watcher for a leading 
UK house. The 'new* shares 
eventually dosed a net ‘h up at 
79p, and the old put on 3 to 
250p, after 254p, on a turnover 
of 6.7m. 

Unilever, the world wide con- 
sumer products company, 
advanced to 495p before dosing 
7 better at 470p as the company 
announced third quarter figures 
above market expeditions. 

Analysts forecasts ranged 
around S380ra pre-tax. In the 
event Unilever weighed in with 
a figure of 400m, compared with 
£319ra for the corresponding 
period last year. Some 2.9m 
shares changed hands yesterday. 

British Aerospace were a rel- 
atively lively market (some 2.3m 
shares changed hands} and 
improved afresh to 329p before 
settling 2 easier on the day at 
323 d. The 


323p. The company Is believed to 


however, for press suggestions have carried out a major revalue- 
that the fall in global markets tton of Its pension fund 


might force a sale of the &2 
cent stake in Sears held by 'Mr 
Robert Holmes a Co, the Austra- 
lian entrepreneur. 

But with the exception of a 
handful of blue chip stocks - 
'British Petroleum “new* the 


outstanding example - there was 
the broad range 


little support far 
of equities. 

Nor was the Gilt-edged market 
In much better form. Prices 
opened lower as the pound soft- 


pension fund which 
will result in a contributions hol- 
iday for the next two years. 

This is expected to offset the 
currency provision of approxi- 
mately- £100ra which the com- 
pany has indicated will have to 
be made following the recent 
slide in the US dollar. 

The big-four banks moved 
ahead in the morning but ran 
out Of steam later In the day. 
Generally bullish Press comment 
on the tie-up with Hong Kong 


and Shanghai Bank and a 

recommendation from securities 
house BZW to switch into Mid- 
land from Lloyds, boosted the 
former to 408p before a reaction 
to 393p at the close - a net gain 
of-5 - on a turnover of almost 3m 
shares. 

Standard Chartered, shaken 
recently by fears that Robert 
Holmes a Court may be forced to 
sell his near 16 per cent stake to 
raise cash, rallied to dose a net 
10 firmer at 443p. Woodcbester 
jumped 17 to 160p in response to 
the sharp rise in interim pre-tax 

S slits from £lm to 54, while a 
einwort Grieveson “buy" 
boosted Cater Allen 5 to 360p. 

Insurances made strong prog- 
ress In the meaning bat retreated 
smartly as the session wore on. 
Boyals were a disappointing 
market and lost 18 to 360p as 
Citicorp ScrimgeourVicleers 
advised clients to look for oppor- 
tunities to switch into General 
Accident or Sun Alliance. 

Third Market newcomer 
Tomorrow* Leisure made a sat- 
isfactory debut, the shares set- 
tling at 28p compared with the 
placing price of 25p. 

The Brewery sector was a good 
example initially of the 
market's often exagg 
response to hopes of positive 
moves soon regarding the US 
trade deficit Volume in the four 
leading issues fell to exception- 


Just 1.6m shares of Allied-Ly- 
ona were traded and the price 
touched 343p prior to ending 
only 3 better on the day at 336p. 
Even fewer shares changed 
hands of Bus which gave back 
most of an eariyto dose 3 dearer 
at 779p, after 790p. Whitbread 
"A" were also inactive awaiting 
today’s interim figures but the 
dose was 2 firmer at 271p. BZW 
and Morgan Grenfell are both 
looking for pre-tax profits of 
around 590m compared with 
579.8m for the comparable 
period last year. Scottish & 
Newcastle had more followers 
than most leaders and advanced 
6 to 221p during a turnover of 
1.4m shares. Elsewhere, rene w ed 
speculative interest put Merry- 
down up 15 to 32Sp. 

An initial mark-up and subee- 


queitt small buying helped lead- 


step I 
quick 


forw; 


take a tentative 
but prices were 



half-year figures. AMEC picked 
up 16 at 290p, while Ward Hold- 
ings rose 21 to 139p on news 
that the company had raised a 
540m syndicated revolving loan 
facility to finance its future 
activities. 

Id were boosted at the outset 
by more favourable currency 
influences, but failed to hold the 
gain and eased back to dose V* 
higher on the day at SlOVi. Else- 
where in the Chemical sector, 
Wardle 8toreys pined 45 to 
496p In reply to the doubled 
annual profits and Foseco 
revived with a rise of 9 at 197p. 

In a major study of the shoe 
retailing sector Investment house 
Morgan Grenfell Issued a ’buy” 
recommendation on Stead & 
Simpson “A" - " a perennial 
asset play, with oantioerablede- 
fenslve merits too', William de 
Winton and John Smith say; 
Stead & Simpson “A" shares rose 
6 to 86p. 

.Electrical and electronics 
issues closed well below the 
(lay’s beet levels. Baca! were 
especially In demand and 
spurted to 24lp at one point. 


be gran 

licence In Japan, helped C & W 
move up 5 to 325p. Thom EMI 
raced up to 628p prior to dosing 
13 up at 507p; analysts are visit- 
ing the company's research cen- 
tre at Hayes, Middlesex, and the 
HMV record store In Oxford 
Street today and today after 
which the company is holding 
numerous presentations on its 
various other divisions. BSR, 
which intends to buy in up to. 5 
per cent of Its shares, rose 7 to 
83p. MK Electric, ahead of 
Wednesday's Interims, put on 14 
to 408p. Pleas ey, 'due to 
announce second quarter figures 
on Thursday, touched 160p, 
before doting only 3 higher at 
15 Ip; Kleinwort Grieveson fore- 
cast pretax profits of 576m for 
the six months period. 

Leading Engineers followed 
the general trend. Hawker 
moved ahead sharply in a small 
volume of trade to 448p before 
reacting to finish 19 higher on 
balance at 428p. Elese where, 
good preliminary figures 
prompted a gain of 20 to 200p in 
Concentric. Week-end Press 
mention stimulated Braltb- 
walte, up 23 at 218p, and B. 
Elliott, 3 firmer at 75p. Blrmid 
Quakast wexe abo noteworthy 
for a rise of 13 at I89p, while 
acquisition news left T. Robin- 
son. 11 higher .at 368p. Power- 
screen, helped by a recent buy 
recommendation bom Kleinwort 
Grievson Securities, finned 5 fur- 
ther to 120p. 

Foods gave a brighter prer- 
formance until late In the ses- 
sion when prices turned hack 
Quite sharolv. Unlaate shrusoed 
aside hair-year profits at the 
lower end of. analysts’ estimates 
and dosed 9 higher at 29&p. Cad- 


bury Schweppes, still on. ! 

era! ■ Cinei 


failed to hold its opening 
rise. Closing levels were there- 
fore well below the best with 
Blae Circle only 7 14 higher at 

367ttp after early progress to _ , 

and Tarmac just 5 dearer boosted by the recent numerous quick to benefit from more 
» at 229p, after touch- positive circular on the company favourable 
at one stage. RedUrad 


ally low levels, despite 'their 
appeal as major safety-first 
strides, but sll made good head- 
way before turning back late. 


10 better on the day at 
380p; earlier, the price toadied 
386p. BPB, boosted by a broker’s 
circular, touched 274p prim- to 
doting 6 firmer on balance at 
265p. Marley were a strong per- 
former and rose 10 to 144p, 
while ' Meyer International 
{pined 8 to 839p awaiting today's 


NEW HIGHS AND LOWS FOR 1987 


tartan 


«E*|igrwn 
m wans. Com. 


MW LOWS fl* 

CANMMAN* fl> Bank Now ScoBn. IMS 
(1) Good* Dwmi, CUBCTMCAtS m Cry*- 


ri"w, ujsisiim 

■■■■ (2) MnMp Indfli^fl 

roooa pq aunt fend*, cawra . 

INDUSTRIALS p) Bomur hx)*, ■ 


FT-ACTUARIES INDICES 


These Indices are the Joint coqpifatiinsf die Financial Tbnest 
the Institute of Actuaries and fro Faculty of Acfaaries 


EQUITY GROUPS 
& SUB-SECTIONS 


Figures In parentheses show Bomber of 
stacks per section 


49 


SI 


CAPITAL GOODS 1213) . 
BuQdbig Materials (30). 


Contracting, Construction (33) . 
BectriarisCM) 


Electronics (33) . 


Mechanical Engineering (M)_ 
Meats and Metal Forndng (7). 
Motors (14) .... i 


Other Infetital Materials (22). 

CONSUME! BR0UP (183) 

Bremers and Dtsdflers (21) 


Food Manufact u ring (23) . 
Food Retailing (17). 


Health and H a a se h o M Products (10) _ 
Leisure (30) 


Packaging & Paper 06). 


Publishing & Printing 05) . 

Stores (35) 


Textiles (lfc>. 


OTHER GROUPS (87). 
Agencies 0,7). 


Chemicals (21). 


Con gl o m erates 03). 


SMppiag and Transport (II). 
Te l ephone Networks (2) 
Miscellaneous (23). 


INDUSTRIAL GROUP (483). 


Monday November 16 1987 


tala 

No. 


679J3 

182-79 

124X66! 

inus 


1482J1 


33X62 
39250 
29051 
118234 
99240 
91839 
78? JU 
281526 


374435 

104422 

46306 

317840 

848521 

57957 

82246 

97&Z3 

108X33 


108647 

165141 


n«i« 


872.97 


°r 


+X5 

+25 

+X9 

♦0.7 

+13 

+&* 

*1.7 

+13 

+0.7 

+0.7 

+04 

+04 

-03 

+13 

+0.9 

+13 

+1X 

+23 

+03 

+03 

+05 

+03 

+03 

-13 

+13 


+03 


Est 

Earrings 

VMM 


1041 

1039 

9.99 

1017 

1UB 

1106 

1033 

1204 

0.79 


U-94 

937 

734 

656 

7.77 

930 

635 

831 

1036 

1038 

638 

9.96 

936 

1030 

3X44 

1335 


953 


Hr. 

VMM 
(At at 
(Z7%) 


408 


3.99 

442 

341 


431 

432 
431 
357 


3.95 

2L96 

235 

437 

5.90 
459 
339 

3.90 
433 
235 
437 
431 

4.90 
456i 
402 


3.93 


Tit 

WE 

Wo 

(Net) 


1230 

2202 

1330 

12.79 

1136 

1X26 

1204 

950 

1352 

14.98 

3X54 

1339 

1736 

1731 

1647 

1433 

1834 

1535 

1035 

1X77 


1X26 

1239 

1234 

1X66 

904 


1X21 


mail. 

1107 

tadrie 


1900 

22.91 

3102 

6X76 

35.99 

1X28 

1X55 

731 

3706 

1753 

1738 

4031 

27.95 


1X22 

9505 

18.97 
1505 
2038 
16.91 
3908 
2233 
5134 

18.98 


FH 


13 


66931 


322623 

177736 

147241 

32738 

37842 

21636 

316822 


9006 


1748.97 
243335 

«U4 

3137.97 
DM» 
56442 
81148 
96855 
91651 

uaioil 

165041 

■9611 

1139331 


Tto 


12 


Mb 

No. 


47^29 

8007 

121747 

1767281 

1473381 

32709 

37858 

24735! 

117803 


92166 

787481 

119147 

176841 

1098.93 

468.91 

313139 

HU9 

57749 

8914a 

98002 

1010221 

189603 

16074 


£16632 


U 


Mb 


85451 

117107 

178S3I 1 

1*94591 

3134*1 

965-17 

29409 

111141 

96050 


76250 

119906 

2668571 

99039 

49004! 

299232 

84122 


79SL951 

90211 

976421 

103436 


057.74 

3X1354 


Tear 




•7556 

82341 

114708 

172946 

148823 

37225 

31947 

25756 

123102 

9029 

95X98 

71144 

184640 

148146 

95653 

47757 

257853 

85006 

910 

7043 

04 

97123 


155151 

mn 


87X651 


0401 


DD & Gas (17). 


59 

500 SHAKE INDEX (500) 

934.48 

+U 

9.66 

455 

32.99 





8B49 

61 

snmaMrui cp*h»p 











62 

Aanbc ffl) 

19674 


2L28 


la 






65 


mn 






16X63 


66 












67 




VU9 


841 

38*19 





68 









69 


927,93 

+X0 

IM 








70 

Other Financial (29) 

37947 

+A7 

951 

425 

1351 

2X27 

37736 

38L76 

35731 

35645 

71 












81 

■lining CTtonr* f« .... .. 











91 

Owrteas Traders (10) 

86MS 

+04 

1052 

551 

1X24 

36.40 

N6B 

87X26 

83554 

77563 

99 

ALUSHARE »DEX (720) 


+85 

- 

456 


2X48 




80926 



Index 

o#t 


o** 

Nrt 

Na* 

^No* 

Nov 


Year 



Ho. 

am# 


Low 

13 

12 

U 

10 

9 

aw 


FT-SE 100 SHARE INDEX * 

1684-7 

+64 

17344 

1M4.7 

16713 

13825 

1015 

15735 

13652 

1014 


FIXED INTEREST 



Mon 

Nov 

16 

Oaf* 

-is* 

FrI 

Nov 

13 

xda*. 

today 

w 

to date 




-0X0 

-0X0 

12430 

14240 

■ 

H 

2 

5-15 yean 

142X5 


3 

Over 15 years 

350X2 

-002 

150X4 


1241 

4 

imdeenables— 

16733 

-031 

16745 


1XM 

5 

All stneta 

138.41 

—0X2 

13038 

■ 

1X56 


Wo-LUod 






6 


124J5 





7 

Over 5 years — 

X25J0Q 

+033 

12442 

$9 

UN 

8 

AH stories 

11543 

+031 

11527 

1 

232 

9 

ESQ 

rm 




9.94 

10 

Preference 

8448 

+042 

8433 

- 

SM 


WQUttOflR 

SEOEMmON YIELD* 

Man 

Nov 

16 

Pri 

Nw 

13 

n 






1 

Low 5 yean 

846 

839 

9.93 

I 

Cocoon 15 jean 

2Sy aM 

9X7 

935 

9X6 

935 

1043 

m 

Medtoiu ajlfc 

9X8 

- 935 

1139 

m 

CnqnB 15 yean 

934 

933 

10.97 

6 

Kmm 

9L26 

935 

1057 

7 

Syoan 

9X4 

939 

1X48 



946 

944 

1X14 

m 


9L27 

936 

1043 

E 


839 

834 

1037 


[win im^i 




u 

Mrifanrafe5% tars. 

235 

256 

341 

12 


3.96 

X9B 

354 

13 


2JT 

2.78 

238 

14 


431 

433 

346 

IS 

Drtai 5 yean — 

1049 

1056 

1147 

16 

Iww 

1846 

1054 

1X66 

17 

25yem— , 

1049 

1054 

1X66 

18 


10.71 

10,76 

1152 


OOpesdog Mn 17075} 10 an 17118; Uaril719J{NaM 1730.7;! pm 17340; 2 fn 17323; 3 pnl72Ut 330 pnl7ZZJ) 4 pn 17117 


♦ Flat yield. Highs ; 

ratable fiwn the Pubifatmi 71a Ftaaadal Ttav Brartna Hoes*, < 


Satwdw 
w EC4P 


jfctritc a ns fltt m u i s k 

4BY, price lift t* post 32p. 


LONDON TRADED OPTIONS 




CALLS 

... 

PUTS 


0 »aw 


a 

Q 

E 9 

L 3 

wyrm 

■ Ay- 


300 

EM 

70 

80 

XT 

Efl 

25 


330 

I] 

M 

65 

70 


40 


3 M 

O 

35 

47 

43 

Efl 

53 


na 

28 

35 

40 

12 

20 

25 



22 

30 

35 

17 

25 

» 

BHHH 

LJ 

12 

22 

27 

28 

35 

40 

Brit- £ Caw 

300 

60 

73 

s :m 

am 

30 

45 

M 30 ) 

330 

38 

6 b 

H H 

I'M 

50 

55 


360 

15 

30 

Li 

Ei 

65 

70 


240 

30 

40 

48 

14 ~ 

22 

2 B 


260 

20 

32 

40 

22 

30 

38 


280 

— 

22 

32 


45 

50 


750 

70 

SS 

115 

33 

50 

60 


800 

45 

70 

W 

60 

75 

85 

hhhih 

850 

Z 7 

50 

70 

« 

IDS 

U 7 

CaMvA mm 

200 

65 

87 

95 

12 

22 

32 

csss 

300 

55 

75 

85 

U 

33 

42 


330 

38 

57 

75 

33 

50 

59 


360 

25 

45 

60 

52 

67 

80 

COR. Grid 

750 

no 

150 

170 

50 

90 

130 

iTKSS 

800 

« 

170 

150 

80 

130 

170 


ISO 

60 

100 

130 

120 

180 

Z 15 

Cmtmtti 

300 

67 

II 

92 

14 

23 

30 

I* 3 S 0 > 

-330 

50 

(1 

75 

27 

31 

45 


360 

38 

Li 

62 

43 

ms 

62 

Com. Orion 

280 

55 

70 

80 

70 

30 

40 

MM) 

300 

45 

60 

70 

30 

40 

SO 


330 

30 

45 

5 b 

40 

m 

75 


360 

15 

25 

35 

60 

m 

90 


130 

17 

22 

26 

15 

Efl 



135 

13 

— 

— 

15 

EM 



140 


18 

23 


n 

27 

|H 

MS 

9 


— 

23 

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IE 3 M 


160 

27 

35 

42 

10 

17 

23 


180 

15 

25 

32 

20 

27 

34 


1 til 

8 

M 

25 

33 

40 

47 


'KH 

57 

Efl 


13 

25 

35 


260 

45 

1.1 

Ki 

20 

35 

45 


Ej 

35 

El 

Efl 

29 

45 

55 


m'j-i 

EM 

70 

83 

12 

24 

30 

BBmH 

390 

'Em 

45 

60 

23 

40 

50 

1 420 

O 

El 

45 

40 

53 

65 


[Er.Vil 

145 

165 

205 

40 

70 

88 


t />VrJ 

115 

135 

180 

58 

92 

110 

niHi 


82 

115 

155 

820 

120 

135 

j u 

280 

70 

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95 

14 

25 

35 

f* 33 U 

300 

55 

11 

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23 

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330 

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SB 


360 

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460 

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500 

23 

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Maris & Span. 

180 

34 

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1 * 202 ) 

200 

» 

30 

38 

17 

24 

28 


220 

10 

20 

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28 

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200 

32 

45 

52 


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35 

(*2111 

220 

20 

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37 

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240 

13 

23 

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fci 

50 

60 

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(* 124 ) 

110 

120 

25 

18 

30 

24 

36 

31 

8 

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18 

22 


130 

M 

20 

27 

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Efl 

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950 

115 

170 

170 

45 

65 

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1000 

85 

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153 

60 

115 

133 


1050 

70 

100 

133 

102 

145 

160 

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2*0 

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260 

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<• 309 ) 

280 

300 

40 

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100 

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14 

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120 

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15 

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40 

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500 

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220 

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260 

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(* 485 ) 

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(* 225 ) 

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(* 157 > 

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15 

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200 

220 

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130 

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20 . 

18 

30 

25 

23 

27 

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(* 455 ) 

420 

460 

500 

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20 

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35 

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70 

45 

15 

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29 

40 

65 

35 

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(- 466 ) 

m 

63 

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a 

a 

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(*240 

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a 

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<* 262 ) 

240 

260 

280 

35 

22 

12 

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15 . 
22 

32 

a 

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35 

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BteChrie 

(• 363 ) 

350 

360 

375 

35 

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a 


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«N 0 ) 

260 

280 

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15 

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1050 

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1150 

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55 

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145 

120 

235 

205 

185 

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30 

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135 

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130 

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11 

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(*409 

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15 

20 

30 

30 

35 

35 

50 

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(* 128 ) 

u 

U 

m 

a 

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14 

20 

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run 

153 

160 

167 

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(* 204 ) 

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27 

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(* 483 ) 

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(* 349 ) 

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ter 


104 

106 

108 

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% 

Tr. nir» 03/07 
. ( 119 ) 

m 

§ 

i 

S 



i 


ni udui bM seotiu pda. 


d 

finish 7 higher on balance at 

237 p. Seed International 
dosed 16 better at 358p after 
having touched around 366p at 
cme stage. 

Elsewhere, Tod featured a rise 
of 33 at 253p in response to news 
of the amrred bid from C.H. 
Beazer. Newsletter comment 
boost to Arewson, 10 to 


le good at 80p, and 


SO 


higher at 293p. Press mention 
enliv 


livened interest in Smiths 

Industrie* which gained 8 to 
212p and Low and Bomar, IS 
dearer at 169p. Hopes of. an 
increase in European demand for 
auto catalysts prompted firmness 
in Johnson Matthey which 
dosed 13 to the good 239p. 

Dealings in GRA resumed at 
lOOp with a dose of 9Gp follow- 
ing the Wembley Stadium acqui- 
sition; GRA shares were 
suspended at l60p at the com- 
pany's request prior to the mar- 
ket’s recent collapse. 

The US dollar's continued 
recovery touched off fresh sup- 
port of Jaguar and the price 
rose to 335p before settling only 
3 up on this session at 322p, A 
downgraded profits forecast 
from a braking house failed to 
suppress Kwik-Fit, up 9 at 268p, 
whfie Dowty made an impres- 
sive recovery to end 17 higher at 
172p. Distributors also snowed 
up well with the exception of 
r. nBw«.n l down 168 at 460p. 
The cash alternative of the Ani 
Europe offer lapsed on Friday 
and C.D.Bramall shares y ester- 


arid lesser enthusiasm for 
ton Communications, 30 dearer 
at 533p. 

Leading Properties were 
unable to build on early gains 
and eased back to close with 
only small rises on balance. 
Land Securities, after early 
progress to 470p, came back to 
close just 3 dearer at at 463p. 
M35PC were finally 10 higher at 
440p, after 460p. 

British Gas attracted a turn- 
over of 10m and settled a net 2 
Mogher at 131 p, after 134p, 
ahead of Thursday's interim fig- 
ures. 

Traded option contracts 
totalled 36,071 comprising 16,987 
calls and 9,084 puts. Rolls- 
Royce were active, attracting 
2,670 calls and 3,077 puts; the 
Arpril 120 calls accounted for 
2,015 trades and the Apr il 120 
pirts 2,000 trades. The FTSE con- 
tract attracted 1,052 calls and 
1,420 puts. 


Traditional Options 


• First dealings Nov 16* 
Last dealings Nov 270 Last 
declarations Feb 18 4) For Set- 
tlement Feb 29For role indica- 
tions see end of London Share 
Service 

Stocks dealt in for the call 
included Abaco, Amstrad, Brit- 
ish Gas, Sparges, GEC, GKN, 
Polly Peck, Blacks Leisure, 
Amalgamated Financial, 
Dewey Warren, Bula 
Resources, Sears, Tranwood, 
Flogas, Eagle Trust, Benjamin 
Priest, Aran Energy, Tootal, 
Property Trust, Bat Indus- 
tries, Centrway Industries, 
Camford, Ferranti and Astra 
Holdings. A put option was 
arranged in Renters B, while 
British Petroleum were dealt 
in far the double. 


TRADM6 VOLUME IN MAJOR STOCKS 


that General Cinema of the US 
may further increase its stake in 
the company, gained 4 more to 
224p. Among Retailers, J. Sains- 
boxy firmed 8 to 23Qp ahead of 
an analysts* meeting. 

Grand Metropolitan wore 


The Mh m tag to tend on tradog wkm far JUpta aortUci Oeatt Umuri> tin SEAQ 
QntMT yestanbir estif 5 pat 


currency influences 


hri, Dri Group, 

’"nSK: 

Chran. OCE Spe.' Cam. 1flS7-BZ.' MWM 
0) OtvMaan Pmto*. TltUSTS (3) EuropMn 
Aa-rt. cmtouii Rrtltoigra. 


Option 

n 

E 3 

O 

E 3 


E 3 

ES 


FT-SE 

1300 


»l 

EI 

no 

15 

45 

TO 

as 


1560 

185 

225 

245 

z n 

20 

59 

as 

100 

. Wn 

1600 

147 

190 

22U 

249 

S> 

■ IS 

100 

12s 

(•1721) 

1650 

155 

160 

190 

223 

4/- 

95 

ra 

147 


1700 

8) 

13b 

167 

20Q 

75 

US 

iso 

m 


1750 

M 

110 

14b 

1/b 

100 

14b 

176 

200 


1800 

40 

10 

El 

Ei* 

IxJ 

1/0 

205 

230 




Vqfaraa 

(Mrs 


Mr 


Racri . 


Rank Ora.. 

KMC 

RHM. 


RacWa ACat. 


RMdtntL 


vert . 


RUk-AWM. 


Jaw-. 

UdbnPw. 


— — 1Z,©0© Unril 

xan - iasmo 

llA- - towto 
v Ute» i 


K — nmju »._ 
itosM. 

«q — 1,900 

809 
%000 

. . . ZB 

. 2,900 
IJI0O 
36S 
«6B 

. 501 

«gpc 1,700- 

6 .M0 

M mwtl l Count. 153 

IMS Bar 5L9 

Mkirod B e * 3,000 

MaWcftBM* 1300 

Ww ■ 1^00 

NortkntiRMdl 2b3 


Ryl Bank Scc(iand_ 

fc 


SnmMASmkM-. 

ScattAMmcatMi. 


2^0 

67 

1.000 

473 

29Z 

XB00 

um 

1.700 

*S2 

579 

1400 

116 

3200 

2 , 1 m 




798 
825 
2400 
374 
ASM 
<6 
733 
3,900 
1,700 
5400 

___ 2600 

TnWprNOM— 7U 

Ttaw Fort* 23®s 

immnr 51« 

Urilww 3400 

UafMOBhcuOJ UK 

Wfellea— 1.U0 

WMrtraMlA. — _ 921 

Woo/vwVi iflBO 


RISES AND FAUS YESTERDAY 


BritbNFwih. 


Cw po r D ou^ PomWan rari Foreign Boatfc . 
total/ri! . 


FlnmcU md Praparttes . 
Ota. 


PtaataUam. 
Minas. 


OCtorr. 


Rbes 

Fata 

2 

102 

3 

19 

828 

197 

346 

54 

53 

19 

2 

0 

94 

41 

108 

62 


Same 

U 

32 

539 

229 

39 

12 

63 

9Q 


Totals. 


X436 


494 


1,015 


■C 


LONDON RECENT ISSUES 




ERUITIES 


r* 

FA 

F.F. 

FJF. 

s 

FJ* 

Fr. 

FA 

rr 

FA 

FA 

FA 

F4 

FA 

FJ 

FA 

FA 

FA. 

FA. 

FA. 

FA 

FA. 

FA. 

FA 

FA 

FA. 

FA 

FA. 

FA 

FA. 

FA. 


601 

2300 

601 


2601 


1102 


902 


2300 


2001 


2001 


1202 




2501 


mi 


£ 

16 

73 

75 

u 

103 

s 


p A — lAtattac. Etfll — 1 
whsUto — H 

iBrttirt PMrofeHB 

' to. 






68 

MO 

s 

MB 


HMOndgiiym 

Bps a&sS 





rTcnnmnn LatanSOpl 


M 

98 

46 

135 

68 

■a 

uS 

160 

* 


+5 


+Z 


+*i 


+2 


teAM im 


8025c 

US 


R 26 

U2J 

80.44 

830 


825 


L9 

1X53 

1X53 


RU7 


L 13 
LZ3 


036.9 

820 


84.75 

8X5 


14 


44 


24 




034 


& 


U> 


6J 


U 

U.7 




u 

JflJ 


m 


SB 


FIXED INTEREST STOCKS 






































































































































































































































43 




Financial Times Tuesday November 17 1087 0 


WORLD STOCK MARKETS 



Stitt 

Slack 

m » 

low 

Ow tog 

0180 

Shan Can 

S33 

32% 

32% 

+ % 

!pth> 

Shwrm 

S5 1 , 

S 

5>i 

+ % 

300 

Sigma 

S13 

16 

15 

+ % 

2780 

Soumm 

816% 

18 

18 

~% 

6180 

Spar Amo 1 SU% 


13% 


SOSO 

Stonbg A f 

831% 

30% 

30% 


38617 

&Mk» A 

818% 

18% 

18% 


, 2496 

Tack Bf 

834% 

3*% 

34% 

+ ’4 

1 11 BOO 

Tana Un 

110 

106 

110 


14680 

Tauco Can S2S% 

25% 

25% 



Thorn N A 

828 

25% 

?7% 

+ 1V 

253377 T(r Dm Bk 

C4% 

23% 

24 


24800 

Toratar 8 f 

824% 

24 

24 

'% 

33850 

tom Pat 

817% 

17% 

171, 

~% 

400 

Tmj Ml 

*13 

13 

13 

+ 1, 

42308 

THlAtta UA 

82814 

77% 

28% 

+ % 

40100 

TrCan PL 

818 

15% 

15% 


62050 

Triton A 

815% 

15% 

15% 


13307 

Trimao 

365 

3S5 

355 

*10 

10500 

Trinity Raa 

00 

SO 

50 

-e 

1130 

Tritoe A f 

823*4 

23% 

23% 


750 

Trteec B 

824% 

24% 

24U 


35143 

Ubur F> 

710 

182 

192 

-re 

1700 

Un Carnld 

814% 

14% 

14% 

+% 

1257 

U Enprbo 

89 

9 

9 

3000 

U Canao 

81 

61 

61 

+i 

1400 

Virican Ind 

710 

210 

210 


1000 

Vtejox A 

Sit 

11 

11 


123050 Wcool T 

815 

w% 

14% 


3000 

Waatmln 

88 

9 

9 

-% 

8283 

Weston 

832% 

31% 

32% 

+ ii. 

4534 

Woodwd A 

85% 

5% 

5% 

+ % 


F-No voting rights or rastrtaad voting 
rigttt. 


MONTREAL 

Closing prices November 16 


r -l FuaWSewr 


33811 

Bank Uort 

825% 

25% 

25% 

+% 

27900 

BombrdrA 

807% 

07% 

07% 


74424 

BomtwdrB 

807% 

07% 

07% 

+ % 

8600 

CB Pak 

815 

M1« 

14% 

+% 

81240 

Caacadas 

806% 

UB% 

06% 


3150 

Con Bam 

816% 

16% 

16% 

+ »4 

IBM 

DoaiTxtA 

sm 

15% 

16% 

+ % 

75636 

NaiBk Cda 

8107, 

KM, 

10% 

+ % 

3800 

NOVOiCO 

811 

11 



44550 

Powor Core 813% 

127, 

«% 

+ % 

6419 

Proviso 

*08% 

00% 

S?» 

+ % 

3900 

riapap Entr 

810% 

10 


-% 

1600 

RoitandA 

810% 

10% 

1014 



Royal Bank 
SMnbrgA 

827% 

27% 

2714 

-% 

1650 

831% 

31 

31 

-% 

14170 

Vtdaatran 

SKP4 

09% 


+ % 

Total Salas 5J00.762 shares 




Mm. 

Non. 

Nov. 

HO* 

16 

X3 

12 

n 

129L7 

6WJ 

1775.9 
687 J 

12060 
6320 ! 

115L0 

5869 

18L49 

17953 

174.96 1 

172J& 


185X1 1 18250 18152 


5714 563.9 5556 5402 6791 0500) 


Col 2928 2845 te) 4604 OMD 2845 0201) 

798 755 75.7 (d U7ZC6I3) M.7Q001) 


456.99 45049 44354 41086 67654(60) 400130001) 

14045 13795 1361.9 12765 206U 07® 122090001) 


2S0L86 2226.74 2U087 204618 3949.73 000) 196090(501) 


50713 I 49676 49640 48392 76754 00(4) { 47627 0001) 


1854450 030) 
1557.46 030) 


2202 2171 20L9 334104(8) I 1922 0001) 
1722 1675 1575 2805(11® 1475(1001) 


38013 36759 35655 3395 39254(2179) 307.48(1001) 



Suits Tam InL 0002(66) { 84410 I 8222 1 8021 7805 1505.4(26(8) 78050301) 


to 15725 15760 14960 24995(3® 14485(501) 

to 14885 14945 14785 22660 0600) 14235(20) 


OVER-THE-COUNTER Nasdaq national market, closing prices 


SsIZ&SI 


21658 32544 (600) 20259(8® 


232951 226010 212810 to I 35584(900) 2068600001) 




PhrmdtS# 

PtcSnvtt 

PtcCaJ* .48 

PionHI 154 

RqrMg 

PoughS»20a 

PracCM 58 

prasUx 58 

PramCp JO 

Priam 

PncaCo 

PreaTR 

PtinvD.nb 

PrasGp 

ProtUu .70 

PrvLfa 54 

PgSdBc 50 

PuftzPh xO 

PuritBa 11 

PyrmT 

niinrtn 

■QVC 

Quadra 

OnnkCh JO 

Ouentm 

Ckttslv 

Quixto 

RPUt 58 

RmtSyUB* 

RmvM 

RgcyCr 

flgcyQ 20 

Ragans 

RaglBc 5B* 


RepAm 3* 

Raum JBCa 

Ftatm 

RayRy 28 

«wnH 

FUbttm 

RchmHLOSa 


n 
7U 
W% 

14% 

W| 

20 

75% 

«% 

■a 

22 347 17% 17% 

12 3717 «% 12% 

15 84 14% 14 

17 000 30 - 28% 

IB 457 16% 15% 

6 52 13% 13% 

13 144 27 20% 

13 112 10% 8% 

2B 175 S% 0 

1779 1% «4 

182038 28% 2B% 
11 486 21% 20% 
108 40 8% 8% 

886 7% 7 

fl 143 12% 12% 
6 814 15% 15% 

10 880 18% 17% 


51 208 6% 8% 

14 201 4% 3% 

•143 7 8% 

183 0% 0 

10 OS 15% M 

21 804 8% 8% 

11 303 0 7% 

218 6% 6% 

R R 

172088 13% 12% 

17 818 8 8% 

TO 345 0% 6% 

58248 1% 117-82 

23 407 3% 3% 

14 182 13% 13 
7 04 18% 13 . 
2» 8% *% 

11 304 14% U% 
1452 51% 48% 

91018 - S, - 5% 
92320 17% »i 
137 20% 257| 
530 47, 4% 

« 12 % 12 % 


25.. +' % 
99 +!% 
41% + % 
S%- % 
25%+ % 
12 

% 

14% 

1414+ % 
23 - % 
18% - % 
15%+ % 
55% + % 
14% + % 
«%- % 
*% + H 

17%+ % 
12% - % 
M%+ % 
20% 

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\ 

28% — % 
Wi 4 + % 
8% 
fflf 

r-v 

7%+ % 

12% + % 

17%- % 
33% +1% 
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SUM H%6 U* last Oug I Stock 


Sparks 310 8% 6% 

Sandy 150 10 150 S3 91% 

SWUfc' 10BS 9% 5% 

SUHaga M 18x780 21 20% 

StrptSvMSI 124 11% 11% 
8 te3 t9» X4 102211 21% 21 
StwBca JO 12 46 20 12% 

SawStv 14 7 16% 18% 

8MM JO 8 377 13% 13% 

SUM 281407 21% 20% 

StrwbCI 59- 8 45B 28 24% 

Sryfcra . 21 12s W% 16% 
Subaru JB 451044 8% B% 

SuftFWl JO H 840 0% 6% 

6umlA.72b 12 74 23% 22% 

StmQn) 18 180 13% 12% 

SutrtUo 2511823 33% 80*4 

Sumnta la 01400 30 28 

SymbT 25 BIS 29% 27% 

BytnbOe . , 1208 1% 19-16 

Syatin 8 687 6% 51* 

Syatog 14 784 47, 4% 

SySdtw 88 It 10% 

Bytent .12 20 237 28 25 

T T 

TBO* * 23 9 9 

TC8Y SO 284 10 9% 

TCP 12 832 7% 7% 

TMK 20t 8 461 7% 7% 

TPI &1 .802 '4% 4% 

ts tada re 438 3% 3% 

ISO 5 lie 6% 8% 

Tttun . 10 8 % 8 % 

Tandem . 2340025-18 2 

TebOtas U 461 8 8% 

Tsknad 100229 7% 0% 

TtaoAa 304871 21% 20% 
TlOnaai . 1 42% 42 

Talcrda 44 28 3» 20% 26% 

Taimato . 25 680 7% 7% 

Tatataa S 84 T1% 11% 
TatonJIa 14 07 13% 13i 4 
Tannart 58 11 30 20 18 

Taratita 43 833 8% 8<4 

3Com * .211184 U% 17% 

TottoFktai 77 943 SO 8 M, 
Topp» .17 288 17% M% 

TmMua 17 132 M% 15% 
TrtSMT 20 376 11% 10 7 * 
TrtadSy 13 09 9% 9% 

Trimad I 144 US . 11% T1% 
TSriop 128 . 9 139 25% 25 
smttin 32 11 563 18 17% 

Tyctfiy S 158 9% a% 

Tyson* 54 re an ia% w 

u u 

IJOTs 53-12 40 22 21% 

UTL 11 140 8 . 7% 

Ungm - 942D2S 8% 7% 

Uni 9 487 15 14% 

UnPWr JO X GO 21% 21% 
Uttm M 157515 20% W% 
U8C0I -54| 24 412 15% 15 

UHUCr 638 3% d 2% 

IMSrat .72 4 24S 14% 13% 

UBBep 30 8 796 21% 21% 

US H8C.16 1442856 57* 5% 

US" Sur JO 19 224 27% 27% 
US Tra T 11 33 34% 33% 


7%+T% 
31% -1% 
5% 

sr* 

21%+ % 
a 
16% 

13%+ % 
21 %+ % 
25 + % 
10 % 

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8 % — % 
23 %+ % 
12 %+ % 

STA 
28% - % 
19-16 -3-H 
8 - % 
4%+ % 
W%+ % 
25%+ % 


3%- % 

e%+ % 
o%- % 
2 - % 
8 % 

7 

20 % - % 
42 -1% 
28 + % 
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11% - % i 
13% 

20 +1 I 

17% + % I 

8 - 5 

15% 

11 %+ % 
B%+ % 
11 %+ % 
20% d 
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18 

22 + % 
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z> - H 

27* - % ! 
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1 

5% 

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UStabi JO 

UnTatav 

UnvFm.03a 

UnvHUJSa 

UwMadJO 

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vu sna 

VWR JO 

vafidLg 

ValNU 1X4 

VanGkf 

Vbromg 

vicorp 

viswUa 

Viking 
VI pom 
Vlratak. 
VWvo 1J(a 

WD401J2* 

WTD 

WWbro AO 
WaaftEalJB 
WFSLa 50 
WMSBs AO 
WatrfGLOs 
WanauuiO 
W«u*P AS 

WbstFn-OSs 

WelMs 

Wsdmn 

Waraar-Ma 

WaiAut 

VtoCap 

WstFSLIOa 

WI71A 
Wttmrt 
WmotC 50 
WsMOa 
Wattraa J2 
WhaTTch 
WDIantrUB 
WH1AL 
vniSFS.05a 
WlbnTa 54 
WiianF 
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tMaarO XO 
Wotobn J4 
WCYS JOa 
WOW 

Wortbg .40 
Wyman JO 
Wyaa 


XOUA 

xj at 

XM« 

Xyloeie 

Xyvan 

vUf. 52 
ZkmUt 1-44 
Zontivn 
Zvcad 


Saks Hm6 law 
Wahl 

M 377 14% 13% 

60 27 21% 20 
11 372 12% 12i 4 
23 471 3% 3% 

9 48248-18 4% 

V V 

14 303 18% 16% 

478 6% 8 

58 1SS5 87, BT 

17 110 10 8% 

7 54 19 .18% 

169372 3% 3% 

64 487 30% SOU 

345 5% 5% 

200 8 % 5 % 

T80 8% 0% 

14 120 6% 5 

W S 12% 12 
74 000 19% 19 

240 15% 15% 
841 45% 44% 

w w 

18 90 25% 25 

M 77 13% 13% 
10 38 21 20% 

18x341 15% 14% 

8 44 24 23% 

3 514 WU IS, 

8 27 12% 12% 

13 01 17 18% 

9 137 25% 24% 

x57 8% 77, 

9 19 13% 13% 

19 180 18% 18 

15 810 137* 13% 

U 220 8 7% 

284 11», 11% 
35 288 38 35% 

13 2B0 10% W 
If 3! 19 72% 

258 15% 13% 

Tl 16 18% 17% 

22 427 17% 10% 
re-334 W% 19% 

930 . 107* 18% 
8 313 36 35 

ID 057 157, 16% 
48 10% 10% 

10 118 22 21 

21 385 8% 77, 

ID 11 1% tl, 

58 37 15 15 

8 83 11 10% 

72 11% 11% 

3768 1% 1% 

17 795 107, 16% 

181 0% 13 

11 1414 SO 19% 

X Y Z 

024 12% 11% 
M 4BB 6% 6% 

3364 8% 6% 

9 222 0 8% 

23 78 8% 8% 

181794 27 25% 

64 27% 27 
- 604 0% 8% 

200 37, 3% 


Un (tag 

*3%- % 
201,- % 
12 %+ % 


17 -1 
61-1B+VK 

9%- % 
ie%- % 
3%- % 

30%+ % 
5%+ % 
6%+ % 
6% 

«%+ % 
«%- % 
15% - % 
44% +2% 

2S%+ % 
13%+ % 

ft** 

a%+ % 

187, 

12% - % 
16%-.% 
25 +1% 
B%+ % 
13%- % 

18 • 

137,+ % 

11%+ % 
36 + % 
10% 

13 + % 

15% 

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W|- % 
% 

15 %+ % 
«%- % 
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167 ,+ % 
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Snfet Bank bd. (31/12(58) -. | 5145 J 5813 | 4855 ( 4519 729.7 (5(10) [ C0.9U001) 


to 395.4 m4 38L0 495.9 (27® | 350 (2(1) 


Saumby Nmcaftcr 14 Japm Nikkei (c) . TSE (c) 


if.; :-v.ifmG: '^-llte.TI 


Bur vbIbh of aH hx9ccs ai* 100 rxcxpl Brandi SE - LOOT JSE Gold - 255.7 JSE iMhOrtah - 
2J24.77 (12712) I1X35J4 (26/1DI I 254 J and Aanrafla. All OitSny and Mafab -J 50ft NYSE All Common - 50; Sundsrt and Poor's - 
1 * 10; mo Taranto Coopodu axf Meta* - 1000. Toranw Mas. baud 1975 and Moaneal PorttoHa 

I 471783. t Endudteg Ooods. % 400 inckiitrials pits 40 udlRlHt 40 Htiaadak and 20 iranpons. (c) 
Closed. (a) UnavalUHr. 


Mnt Aetm Stocks 
Smoker IS, 1987 


Stadia Oaxtaf 
TmW Me* 


TOKYO - Mon Active Stacks 
Monday. Nowrebv II, 1987 


Japan Syatk. Btibkv. 

Bhacfci 

KamaUStoi 

UppaaSMl 


Akaa ao Day 

772 + 24 t^paaSbMa 

1J48 - NEC 

330 - 1 Kagan tea. 

420 - Aftn 

2.100 - 10 Saay 


Stab Obskg Chnga 
Todad Nm oaOay 
(SO- 7.1 870 ■ - 

5-51n 1,180 

5JI- 1.588 +100 

4J2a 1J18 - 20 

3JBn 4,700 +1GS 


t Chiefpricechanges 

I A Jl^l Lit. Jill (inpenceunlessotherwtselndicated) 


RISES: 

Tr 2%% IL 2003 JC105K> +% 
Carless Capel — 85+6 

Concentric —— 200 + 20 


Dowty 172 +17 

HammersonA - 460 +37 

Marley 144 +10 

NMW Computers 145 +25 


PlioenixProp — 110 +15 

Ratners 254 +13 

Reedlntl 358 +15 

Rothmans 349 +14 

Shiloh 293 +30 

Stand-Chartered 443 +10 

Thorn EMI 507 +13 


WardHldgs 

WardleStoreys . 
Woodchester — 


139 +21 
495 +45 
150 +17 


FALLS: 

BramaH(CD.) ™. 460 -168 


Stay in tune with your markets 
— ahead of your competitors 


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44 


0 Financial Times Tuesday November 17 1987 


NEW YORK STOCK EXCHANGE COMPOSITE CLOSING PRICES 


.. .. - ' Cl's* Org* 

_ W St Dm Pm. 12 Monk 9/ Sh Dm piw. 12 MM 

Sr ??? w. 6 ID&W* law OwtCbM wp um Sort Ok W. E IWlMgll »» WiQbi High law Sn* 


* °>l 

Clm Pm. 1 12 MM 


th'pl 

Dm Pin. 12 MM 


Ch'K| 

BmPw- 1 12 MM 


” *5. _ «miw». iz mm iv a Dunn iizMM n a l /J.T . E tmiiiriT — n ■■rn 

w. E HMtoHlgk l» OMOm High law SM Div. W. t lOOfeWgh in. OnOm High Urn tefc 1 Obi W. E lOOtSqb Aim OamOm ffigh l m *■* J 1 *-* I? Sk ^*7? 


a; 5 v, S C 5r* * :* 4 

3k issici as as sau tswaas; 


»E3*.“ — «*» S a. a s' ft ESS*' w s ™ ssr ^ SS-S 

HUfiF .88 4ft 2304 20% TO*, »*4 +* » g SKSe,# MW 1208 40% 38% »% +C 

HydroUlftO Mil 111.27% ZT 27 g? ^ So WO M23 2F, SJ SJ +jf 


Hydral*L46 MU 111.27% Z7 27 

I I I 

BP n 57 H 1ft W< 


W iao M 1523 29% 28% <S% 195% 931, MaauEBS e 

LBQa IT. * 158 B% » 7% MUM) 


231« «% AdaEX 3ft4« 17. flrt igr, m 19% 43 r» gn. Bearing 1 3.1 IB « 33 32% 32% 

TO% 7% AdmMsft* 497 88 9% 9V 9% 18% |% M «l 493 «V 13% 

35 14% AtfvSyi W 934 2% 25% 27% +C » «n, BfldOfc .74 1ft IS 1093 50% 4F, 

3*7, 9% AMD 3745 10', 10% 10% -I4 is-18 M2 vIBefcar 49 MS % 

56k 30% AMO pf 3 M 547 31% 30k 31% 4% 38% 18% BakktH .40 1ft TO 68 31% 21% 

11 7 J A* Adobe 3B0 5% 5 8% +% 75% 35% BolHwl JB2 1.0 11 1280 6314 56% 

20% 15% MOb PM« 11. 6 17% 17% 17% 4% re 35% MHwpl.74 13 3 58% 58% 

2H« 17 Adab P< ZAO 11. 80 21% 21 21 + % 7B% 00% BeilAU 184 5.5 11 3314 69% 881* 


19 3% CnStor 


ICM LGOb 17. 48 150 8% 9 9% +% 

Of 30 782 7% 7% 7Jp -% 

l£ M 2029ft 9 38 Z3U Z3% 23% +% 


rn, 34% M8SCB3.B0 88 27 40% 39% 33% 

tf* £? vSmein* 10. “ J2J» ® 

185% 931. MaguEBS b s S84_ 191 139% 189% 


35 14% AdvSyi W 934 27% 2ft 

247, 9% AMO 3745 107* 10% 

56k 30% AMO pf 3 05 547 31% 30k 

117* 4% Adobe 390 5% 5 

20% 15% Adab pflft* 11. 9 17% 17% 

217* 17 Adab pi ZAO 11. 80 21% 21 

15 61* Advm.128 138 371 8% 8 

09% 40 AetnU 2.78 S.fl 7 429B 90% 40% 


+» S 7 Jit’ 4 iS' I 307 b 13% Conor 84 4.4 13 MO 15% 14% 14% -% I 28% 16 FUrfH 140 7.7 


mm fi • 

MaaLoK.03* tt. 12 90 *% ^ «% -% 

Muon 1199 8 «%»%-% 

UuosBf 4 KL SI 38% 39 38% +C 


14 15 10S3 50% 491* 49% 32 40% CllP pfB<L50 TO. 

49 MB % *32 M n% 60 CnP pfCA5Z M 

1-9 10 63 31% 21% 31% 83 64 CnP 1*07.45 10. 

1.0 11 1200 621* 58% 017, +j3% a**. 6J- CnP p£7.7Z 11. 

13 3 SSI* »% 90% -1% 88% CnP 0*07.76 IT. 

5.5 11 2314 69% «% 09% 32% 29% CnP prUSJO 12. 


iiasg 8% 8% -% 

SI 38% 39 38% 4%. 

202 10% 0% 10% 4% 

3206 31% 3ft 38% 


ZZZ . ^ Zr, a “ ' ^ ** OM Wj }4h| 27b 20*1 IE no znaj a SB 29% 2^9 6WB ’ ■» - H Maww n "Wf *7 "M 

2ot «• Sl fi • SI* ’!* p®- 87 * 9- 1 27 19 16 W 20% 14% MAM L88 1ft 25 IF* 16% 16% “% la. 34% MaiMpf 4 10. SI 39% 38 39% 4% 

j?* 4 “J* ft% 10 HWffl 1J0 .7.713 MQ 20% 19% 18% -% 29% 17% IPUm B&72S 15.8 282 19 18% 18*4 +% fSj 3?* mmm 292 W% 8k W4 4% 

^n«i. mi. ■*‘1.2 * 2!* PjfaBW-O* 44 8 294 24% d23%22% ’1 20% 127. my 1.329.1 13 x22 14% 14% 14% +% ci? ~A m«d 61 14 Mil 3206 31% 3ft 30% 

5^0 7?* rT* ^ *■? S5 1 SI* 522? 1 'S. M 10 628 33 33 46 * ITT CO ^5 ZS 11 2739 49% 48% *0 , 32% UaytKS-90 4JM2 T256 21% 20% 20% +% 

m Im ~ J SI'S 30% RWMC 32 4.4 138 W* 20% 207, +% 64J, ITT rtK 4 4B 1597 8787 % _ * i Zci P rt pfa to. 54 2TV 71 21% -% 

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2?"5L 5u 5L 11 g,. a 5S£-^ , * ^ i% 7% aT* S8 ITT gSaas m b et « ' « +% ^ ZSJw il atas W. «% «% 


» ~k 33% 23% BCE 0 2A0 7 184 28% 27% 277, -% 84% 07 CnP ptW.08 11. zW 71 71 

a -% 23% 117, Beilin a 36 2.4 19 90 11% 11% 11% -% 39% 25 Contort 2 7.1 11 Z186 28% ZT 

+ % 44% 29% Be0Sa«2.20 5.7 IT 4118 39% 38 38% 4% 54^ ggtj cnUCp 2JS0 Ml 1070 40k 40 


831* 30% AflIFto > J2 .7 8 317 50 48% 4S% 4% 44% 2S% Be0Sato2.20 5.7 IT 4118 39% 38 38% 4% 54*. 30% CnUCp 250 6A 

2F* « AhmanSB 7 3819 16% 15% 1S% -% 771* 42% BalaAH M 1714 159 49% 47% 47% -2 B % 2% Conni OBe 2JJ 

5% 1% All eon 40 Z% 2% 2% 42 26% Beerte .72 23 15 77 327, 321, 3^ +% . 7^4 ctUHtd 

63% 29 AkPrd 1 17 13 BIB 36% aS* 36% +% 735. 3ffu BmrtCp 3 9.1 431 39% 39 38 ?4 5% OMSWp 

38 11% AlrWrt .60 4.7 8 114 12% 12% 12% +% 3<% 24 Benef pCLSO 116 z4» 26 25% 28 +% 38% M COMO 

16% 7% Alrgaan 15 48 11 101* 10% 4% 97, 2% BonglS 14 309 4 3% 3% 56 431* CnOt p!440 1ft 

19% 13% AirteaaftllS «. 0 83 18% 1B% 18 4% 71! Borfa«y 46 3% 3 3 8% 3% CdnvHtd 

15-32 % AIMoen 16 10 5-18 5-18 MB 331, 7% BestBya 10 200 9% 9% 9% -1* 14% 8% CnvHdpM-ffle 12. 

10% 7% AMP dpt 87 9.9 53 S'* 91, 0% + % « 0 B«3tPd 3132 7% 6% 67, 2% 5-16 vICooUl 

1067- 01% AMP pl 9 1ft Z100 »% 90% 90% -I* ig% *% BothStl 8 2202 12% 121, 12% 24 5% OwpCoAO 4.1 

11m? 103V AUP el 11 11. *300 104 1031, 1D3'j -1 ,71. U1. Romfii netfiHc 36 3Sb SSTa 3S5. +&■ T4U m nwwtn ns 


110% 103% Alep pi 11 11. *300 104 103% 103% ■ 


471* 14% BemStpt&OOk 


277, 121, AlskAIr .16 t.1 19 436 14% 14% 14% j,, 7 Bems pfBIJ — ... 

2B% 14% Alberto M 15 15 58 19% 167, 187, _% y. Bevrly 30 21 3161 0% 9% 9% +% T2% 

24 12% AfbCuUe* 1.6 12 74 15% 15 IS 86% 16% BevlP ^a3Ba 13. 11 349 U% 17% 17% -% I 


46 3% 3 3 8% 3% COmHtd 

10 200 9% 91, 9% -1* 14% a% CnvHdpflJS 

3132 7% 6k 87, 2% 5-16 vICooUJ 

8 2262 12k 121. 12% 24 5k OoopCoAO 

35 36% 357, 36% 4% 74% 37% CooperlAS 

108 18k Wi 18% 4% 39^ 22% CoprTr S2 


138 70k 08k 88k >% 17% 11% PuFMa 

*121071 7D 71 41 M 8% Hod* 

427 30% 30% 30% +% 15k 5% RahFd.05e 

ZW 71 71 71 +% 30% V RtPG s 1 

11 2186 28% 27k 28 -% 32 M BmK&tJSO 

8 1070 40k 40% 40% +% 457, 23k Raima 1 

S*a 3% 3 3 32% 21% HxVn n 

852 944 dt3-t2B-128- V 43% 19k RghtSI 30 
1 a* F» 6% 6k -% 17 3% HMPI 

2249 227, 22% 22k 4 k 77% 39% FlaEC JOto 

ZM0 44 44 44 -H 437, 29% RaPffl 2.40 


“ 8% 8% 6% -% [ 83 98 FIT pM22S 36 


80 60 +% 1 


14 McOertlAO IL 3183 18% B% 


■ 05b - 2- Es ^4 + k 20% 1Z HJ tat .« 4A18 B2S T3T* t3k 13% -k S? ^ IMDrt m 271 »% Z% S% 

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3 1 «!. 2? E 4 » IS* s% 1 % wmib aa zk zh a . ij fn, mSS.S ml 5Mi45% 44»* A 

J 1 3.7 U 387. 26% 28% Z6% 4% 311, ?11. UIPawr2JW 11. S MOO 25 2«% 247* -% immbm 3.9 9 18*4 81% 59 58 


20% Albtsn b A 8 IS 15 1413 29% 26% 26% 4% j *4 


3181 0i* 9% 9% +% 12% 5% CnpwM 
3*9 18% ip, 17% -% 2S% m* Cp~W p 


IB 112 18k « 10% +% ) 177, 9 


377, 18 Alcan s « 1.8 « 8413 »% 24% 2~k +% 26i z 13 BMckD AO 2.4 17 990 17 18% 19% 77 34k ComQ 1.4 

30 15% AIcoS S .68 3.7 W 3ZS[ WJ* J® M% -% 25% 10% B»HC «1 JB 53 12 125 24% 23% 24% 4% 371* Zt CorBUc X 


M 17i* Ale*AI* 1 5.0 M 1110 »% 1M, 20% +% 331,39 B IU« 9 17 862 »% 23% 24% +k 10% 4% CTF 

® 34k Atorir 135 5 35% 3?% "% 10% 4% BluCfipn.lla IS 91 6 57, 5?, -% 17% 4% QitCrd -29r 

, Ml M Boeing 140 34 11 MBZ 36% 36 3S% ■»% «% «% CntoMlISB 

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21? SL tS" 2r ^ 7% 7k 7k -% 66% <8 Babe plC340 8.7 VI 52% 52 5Z% +k 35% 17&, Cranes £ 

88% 39% A^ PlC 42 40% « 4% 207, 11% BoltBra .06 A 831 15% 14% M% 135% 47 CrsyRs 

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|2 A tejta-rai » 4138 » 71% 71% ->■% 18% 10% BCe#sn125e 9S 84 13% 13 13% 28% 12% CryaBd 

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i2* S3? I » BlkHR 9 


»% 30% -% I 10% 4% BluCTipn.lle IS 


17 862 24% 23% 24% +% 10% 4% CTF 


57, 57, -% 17% 4% CntCrd 


• “ ™ 5° ” Isa* M BoolnalAO Mil Mez 3E% 36 36% ♦% j W , 6% CntoMniBo 


1057, 52 Altagta -75) 36 4138 72 71% 71% +% «! 

19% 87, AlfenG 56 68 184 9% d 8> 4 6% -% » 


29% 17% MCH8I1.44 

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6.7 17 13 21% Z1 21% 4% 

IS 4 35 4% 4% 4% +% 

4 2577 8% 8% 8% 


+ ll 16% 81, MKtSUt 4 2577 8% » 8% 

li 24% 15 MWS 152 M 12 268 TT% 77% 17% 

+ S Ifii* V» MBtnfl A4 4,0 43 5 9% 8% 8% 

I?, 83% 46 MMM S1S8 3S » *0B3K3% . m* 02% 


83% 46 MMM S 1S8 3S » s«3763% 8«, 02% 421 

35% 19% MinnPUSB 7S 8 214 23% 227* 2F, -% 

6% .2% lAtort 1 jB2_ 2% 2% 2% -% 

55 32 MobH 230 fiS 14 7288 36% 37% 37% -% 


+2 28% 12% Mouses M IS 12 186 15% 1*% 15 +% 

+ £ 9T% 40% MonCa 8 747 42% 4^, 42% 4% 

-S ^ m, MomdijBO 8 6265 SB 13i, T2 T , Wi 4% 


34% 297* ABrd pC.75 BS 72 307* X% 30% 

119% 831, ABrd pC-67 3 3 3 84 d83 83 

26% IF* ABIdM SO 5S 12 32 17% 17 IT, 

31% 20% ABusPrSO 67 14 50 21% 21% 21% 

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237, 9 Analog 27 9*9 10% 10 10 

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9% F* ApcP un .70 
1F% 72 ApPw pB.12 


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22% 9 GleaaC 
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10% F, GJbGvtn 


259 F. 2 F, +% 
76_ 1% 1% 1% -% 


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41% 14% AppiMg 13 382 25% 25 25% +% 

27% 17% Arenomtlb 5 12 4417 20% IF, 18% -% 


38% 17 AreoQv20o 


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27 14% COtlC F 90 5.1 50 IF, 17% 17% 

29 5% Catty* S 013 81. B 6 


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2F, 18 Duq pi 2 11. 

23% 18 Duq pf 295 11. 


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56 7% F* F* -% 10% 7% GGCap 

95 13-19 11-16% 11% 6 GGfnc 99 

X2*366S1 4 02% 53% +11 4% 1 VJGtoM.l2i 

553 117, 11% «% +% 21, vjCBM pf . 

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>150018% 18% IF, -1 1% 5-18 OWN wt 


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32 57 10% W% 10% -% ag* 15 KarG pf1,70 US 12 16 F% 17% - % 4% 1% NW . MC 122 1% 1% 1% 

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F4 9% 9% 9% F 18% Keycp L12 49 B 140 23% 23 23% -% 57% 41% Nav p»G 6 *4. 9 441* 43% 43% 

2 9% 9% 0% 30 5* KayaGo 12 12 16 15% 15% -% 46% 13 Neta*L06» A "413 15 14 14% ♦% 

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4% 5 

6% 9% 


7% 7% 

S', #7, 

25% 26% 
130 130% 

127, 1J>% 

21% 
177, 


51 


U 

- u 

+ u 

+ % 

- % 

- % 


SJW 1.68 9 
Saga 

SUoeGn 56 

Salem 5 

ScandFiJZa 
Scholo 36 11 
SacCap .05J 

.16 ID 


SfkaaAs 

Sotlirort 

StHavn 

Sianwd 

StoriP 

SterfSft 

ShutW 

Synatoy 


TIE 

711 

TendSe 

Teteci 

Toiesph 

TmpJEn 

TaxAir 

TWlPffl .40 

TwOya 

TriSU 

TubMax 


USRInd 

Ultra OSa 

Unlcorp JO 

UnVaty 

UFoodA.0^ 

LFdodB 

UnvPat 

VtAnrC* JO 
Wtoh 

WangB .16 

WkngC .11 

WIIMIJt 

Wtrird 

WeOcca JS 

WaUAm 

WMGrd 

WDfgfU 

WiurEnt 

WichRwl 

WOatr* JB 

Woritin 

Zlmor 


$ s 

3 267, S07, 

6 6% 6% 

174 11 10% 

12 6% 5 

53 7% 7 

34 117, 1(1, 

66 2% 2% 

S3 9% 6% 

10 49 5% 5% 

67 23* 2% 

11 56 7% d 6% 

10 10 17, 1% 

13 443 6% B% 

51 1 7, 

6 37, % 

T T 

5T4 27, 2% 

0 44 3% 3% 

as 12 77, 77, 

213 1% 1 

2665 4% 37, 

209 7% 67, 

4701 13% 12% 

a 13 127, 

8 9 6% 6% 

7 10i* 10% 

41236 3% 2% 

U U 

5 1 1 

SB7 7% 7 

215 67, 6% 

5 0 6% 67, 

6 SO 1% 1% 

5 9 1% 1% 

110 0% 5% 

V w 

10 24 17% 17% 

TO 5% 4% 

1367 11% 11% 

0 11 % 11 % 
(7 5B 196 191 

48 2 1% 

5 11 12% 117, 
S 15 1% 7% 

14 6% 6% 

7 810 Ml* 13% 

32 188 9% 8% 

7 3% 3% 

23 17 7 67, 

44 4% 4% 

X Y Z 

26 2 1’, 


267,+ % 
8% " % 
10%- % 
6 

7%- % 
11% - 7, 
2% — % 
W*- % 

- % 
6%-1 
17,+ % 
6% 

1 

3%- % 


Zb" % 

3%- % 
7»,+ % 
1 - % 

J •' 

SS- * 
6% 

10%+ % 
2% " % 


1 

7% 

6% 

S:i 

57*- % 

17%- % 
47,- % 
11% 

n% - % 

193 +4 
1%- % 
117,- % 
1% 

1?* + % 
9%- % 
3% - % 
7+% 
4% — % 


OVER-THE-COUNTER Nasdaq national market, closing prices 


Vamnd 18 67 M% 64 64" 

VUcM 3.40 17 13 30 126 124% 124%- % 

w w w 

437, 26% WICORZJO 8.6 11 7S 30% 30 30% -% 

265 5% 47, 5 +% 

0.7 zW 52 £2 SB 

4J 16 30 (4% 14% 14% 

10 683 5 47, 6 

A 29 8067 29% 26% 26%—% 

1J 20 640 31% 30% 307, +1* 

S 31% WriCSv J6 1013 160 34% 63% 36% -7, 

33% WriU s 1 JO 2D 14 168 50% 58% 59 

1J 16 5034 27% 25% 25% -% 

03 192 55% S4 64 -% 

29 17 2075 70 87% 80% -% 

79 11 79 23% 33 23 -% 

49 10 82 25% 26% 20% -% 

10. *2333*3, 23% 24 +% 

ID TO 0672 387, 30% 36% +% 

1J 12 400 23% 22% 23 -% 

TO 1% 1% 1% 

391 11% 10% 11% 

20% “ “" 

41% 23>* 

00% 30 
52 48% 

30 16% 

131* 5 

“b 12* 


2% WMS 
50 WebR pHJO 
25% 121* Weddit 90 
9 4 Wat notice 

42% 21% waiMt a .12 
447, 24% Wafgm JO 
31% WriCSv 96 
— WriU s 1 JO 
VternC AO 
WrnC pQ93 
Warn rU DO 
WariKMJO 

wwiNeaxo 
WtbWt 148 
Waste a J6 
WrikJn AO 


, 33% 

X 1 * s 

71 36% 

a-« 

9 £: 

40% -25% 
38% 22 

ib 


WM*OJ4| 391 11% 10% 11% +% 

W ring f lJO 7J 17 1807 22% 22 22% -% 

WrisMe .44 IA 20 00 31% 30% 31% +11 

WWHFefJO 3.7 30 1300 42% 4t% 41% 

WriF pTO12a 6.7 459 48% 40% 46% 

WriFM 2 11. TO 213 19 16% 167, +% 

Wendyn J4 4D300 2478 6 5% 0 +% 

e JB 1J M 1(3 15% (51, 15% -% 


J. 

3% 

M 
0 

2 

lb 

S 

40 

37% 23 


16 

37, 

«l 

16% 

Sf 1 * 

S’* 

8% 

«% 

1Z 1 ! 

75 


11 

137 


50% 47% WPenPpMJD 
30 21 WtW el JO 

wuen-gjo 
WCNA 
WCNApf 
WIGS pOJO 
WatnSL J4 
WUrion 
WnU ptt 
WnU pC 

wun pfA 

HfctgE 1.72 
waive a 

60 297, weyecWJO 

60 32% Wayerpr2J2 

11% S% vfWhPtt 
28 17% vfWPtlpfB 

28 13 vJWliPtbf 

407, 22 Whrtpi si. 10 
291* 12 WblWM 
39t« 24% Whlttak 1 
21% 7% Wiefceen 
107, 3% Wick art 
32% 17% Wick ptA2J0 13. 
12% 4 Wilfred .12 16 61 

20% 10 WNksGs .11 J 9 
377, 21 WhOamtAO 6.7 
4% WliSriO 44 

4% WtecMnl.OSs 24. 

1% Wtepdc-TOs SJ 
40 WteDbcIJO 
7 Whwbg AO 
1% Winner 
2B7, 21 WisEn *1.44 
28% 2B% WlsG pH55 
54% 42% wtocPiai2 


% 

8 

52 

1S7, 


BJ *170 48% 46% 46% 

6JW 500 23% 22% 23 +% 

11 100 11% 11% 11% ♦% 

792 1% 1% 1% -% 

7 6% 6% 6% 

8 M7, 14/, 147, 

144 11 10% 10 ij 

608 2% -2% 2% -% 

113 2 1% 1% -% 

54 2% 17, 17, -% 

30 n* 6% n* +% 

39 0 00140% 45% 45% +% 

15 754 30% 30% 30% +% 

4.1 12 1B23 36S, 30 36% +% 

7J 49 357, 351, 357, +% 

*TO0V%» 17%* 17%* ^ 

X3S0 14 14 14 

49 10 10*8 207, 20% 201* +% 

21 131 16% TO 15 +% 

4.1 7 108 24% 824% 24% -% 

3 1514 9% 07, 9% 

29 4% 4% 4% 

49 19% 19% 191* -% 

2 47, 47, 47, -% 

300 12% 11% 12% -% 

607 24% 24% 24% +% 

21 5% 5% 5% 

2H *b A% 4% -% 

6 23* 23* 2% 

60 41 401* 40% +% 

428 0% 8 81* +% 

04 1% 1% 1% 

1186 23% 23% 291* -% 

2 207, 267, 267, 

M 46% 45% 46% -% 

109 22% 22 22% -% 

4J 10 683 307, 29% 297, -% 

21 7 292 9% 9% 9% -% 

50 362 8% 6% 8% +1, 

39 TO 2384 37% 38% 36% -% 

21 1 106 106 106 +6 

6 7% 7% 7t* 

63 12% 12 72% -% 

Wrigfy s1D4a 1J 18 146 58% 57% 56% +1 

Wurtttr _ _ B6 1% 1% " 


4J TO 

4J 11 


02 9 
BJ 
63 11 
7D 11 


WyTeL S JB 26 23 25 10% TCE, lA, 
Wynne JO &1 TO 103 19% 19 19% +% 


27% 187, WtaPS si J4 
47% 26% Wise IJB 
10% 9% WofvTc JO 
14 7% WolvrW 

36% 30% Wlwth si 32 
107% 90 Wotw peso 
9% 4 WridCp 

f9i, 10% WrtdVI 

v? " 

17% 7 
30% 14% 

X Y Z 

3 5.1 12 1267 SB SO 58% +% 

10. 12 54% 54% 54J* +% 

2715 TO 23% 23% 23% 

9.0 29 22 21% 21% +% 

9 W7 23% 22% 22% -% 

325 3% 3% 3% -% ‘ 

19 19% -% 

10% 10% 

H Hi* +% 

«b ^ 

1Z% 13 
18 18% +% 

0% 87, +% 


88% 

31% 

28% 

337, 


60 
a 
a 

7% 2% 

37 M% Zayra 
10% TO* Zeros* 
33% W 
13% SH 
26% 13% 

j»% 11b 

30% 15 
10% 7% 


Xerox 
Xerox p45AS 
XTRA J4 
XTRA (4194 
Yockte 
Zapata 

.40 
AO 

ZanlthE 
ZanLab 
ZenNd JO 


21 7 
39 9 


49 B 

Zara JS 1813 139 
Zurrins JB 3J 11 412 18% 
Zwelg TO* 73 463 TO, 


a. 

7 10% 

1133 14% 
693 4% 

181 a 


Sales figures are unofficial. Yearly higta and lows reflect me 
previous 52 woefca plus tha current week, but not the latest 
taring day. Where a spit or stock riridend amounting 10 25 
per cent or more has been paid, tha year's M(0i4ow range and 
dividend re shown for the new stock only. Unless otharaisa 
noted, rates cl dMdenda are anmad dbbursamants based on 
iha (ansi dariaradon. 

a-dMdtnd also extras), tvanrsai rate of Attend plus 
stock dMdend. c-«qukJ«5ng rivWend. ckLcrited. d-naw yearly 
low. e-rividand dederad or prid m preceding 12 months, g- 
riridend hi Canarian funds, subject to 1W non-residence tax. 
l^Mdefld deriarad Otar spflt-up or stock (Mdand f-dMdend 
paid ttw year. ondttBd. deferred, or no astkm taken at lateat 
dividend meetteg. k-dMdand dodared or prid this yew, an ac- 
cumutotnra Issue with dteidemte In airasn. ihmw lasua In tha 
post 52 weeks. The hi^How range begins with the start ri 
trading, nd-non day deSvwy. P/E-prlce-eamtngK rsfla r-dM- 
dend declared or paid m precedng 12 months, pin stock iM- 
dend. s-stock cpR. OvWonds begin w«i data of spit, sto - 
arias, t-dhridand prid in stock an precering 12 months, esd- 
mated east) value on ex-dwdend or ex-risnfcutkm dsn. u- 
n#w yaafly high, v^raring haitad. virin bankruptcy or racatver- 
’jHs> w bokig reorgoriaed undar ttw Bankruptcy Act, or secu* 
rfiiao assunad by such companies, wd-dteiributad. wi+man 
issued, ww-wtth »«irani4. x-riMkvidoiit cr ex-rigto. xtSs-sk- 
rtstribubwi. xwwdthout wanants, y^ex-dMdend and ealas In- 
(ufl. y(d-yWd. z-flries In ML 


I 


12 FRl’K issues 


when you Orel subscribe to the F.T. 
<S Frankfurt (069) 7598-101 


AAWBd 

ADC* 

ASK 

AST 

Admits 

Acusn 

Adapt 

AriaSv .10 

AdobOs 

AdvTef 

AdvoSy 

Aegon Mr 

AflBsfc 

Agncyfl t 

Agnlcog JO 

AlrWlac 

AlcsMLOBa 

Aldus 

AlaxBre .16 

AlexBSdiJO 

Altoco 

AlsgW JO 

Aidant 

AM8n 

AHwest 

Attrn 

Amcast A4 

AWAtri 

ABnkr JO 

AmCarr 

Am City 

AGreet JO 

AmMBi 90 

AHSkf 

AmtnLI AO 

AM6B 

AMU ns 1 AO 

ATOMY JOi 

ASNYpTVJI 

ASofto .12 

ATvCm 

Am FIFO 

Antritis 1 

Amgen 

AmUBkM 

Antogtc 

AnchS» 

AndvBc .72 

Andrew 

Anhec JO 

ApogEn .14 

AprieC 

AppiBk 

AppteCa.141 

ABtesd 

ApkJBto 

AptdMt 

AidUve 

ArgoGp 

Armor AO 

Aatecns 

AOGLtolJB 

Atom 

AnSeAr 

Autottes 

Auioapa 

Avntek 

BS J06e 
QatoFh la 
BakrJs 90 
BldLyB JO 
BaiBcp .40 
BnPnesiAO 
BcpHw 1.78 


Brio Hite law Ian Chag 

(Hotel 

109136 91* 8% 0% — % 

IS 162 « 15% 15% - % 

13 680 0 7% 77,+ % 

0 409 8% 7% 7% — t, 

20 521 TO% 12% 13%+ % 

23 300 TO 14% 14% - % 

7 275 5% 5% 5% — % 

TO 209 15% H% 16 

40 440 25 23% 23% 


12 378 

14 

12% 

13 -1 

Cifyfod M 0 

683 4% 

4% 

4% 

323 

7% 

7 

7% — % 

CtyNC .64 ID 

135 22% 

22 

22%+ % 

31 


31% 

31% +1% 

CiiyBcpl.12 6 

24 30b«35% 

35% - % 

19 196 


10% 

10% - % 


M 24% 

24% 

2«% 

18 130 

16% 

16% 

16% + % 

Orih 71113 7 

0% 

B% - % 

826 

18% 

17 

17%+ % 

CoOpBk JO 5 

400 12% 

11% 

121,+ % 

tssww 

10% 

W 

w - % 

CoasTO 9 

215 ITO* 

15% 

15% - % 

9 50 

13% 

12% 

12% - % 

CoatSI 1711*8 8 

th 

77,+ % 

39 894 

W% 

13% 

19% + % 

CoheLb 12 

98 ITO, 

16 

16 - % 

8 1765 

W 

0% 

9% — % 

CocaBU JS . 

880 20% 

19% 

20% + % 

9 *96 

*0 

38% 

39%- % 

Coaur 

207 16% 

15% 

W% 

375 

<s% 

TO* 

6 

Cohena 

155 10% 

10% 

10%+ % 

7 722 

11 

W 

10%- % 

Colagan 30 

567 5% 

5% 

5% 

10 178 

7% 


7-% 

CriFdl OSo 4 

193 0 

0% 

a%+ % 

500 

5% 

6% 


CotnGp AO 0 

26 10% 

10% 

w%+ % 

200 

12% 

12% 

, 

ITO* - % 

CrioNt 

417 11% 

11% 

n%+ % 

15 250 

117# 

11% 

11% 

CriuFds .W 12 

11B 15% 

(5% 

15%-% 

34 268 

TO, 

TO, 

TO,- % 

Comcsts .12 

@90 20% 

ITO, 

20% + % 

1061 

i*t 

6% 

5% 

Cracstop .12 

142 19% 

ITO* 

191* 

221 

0% 

8 

8%+ % 

Cnteric2A0 6 

238 56% 

»» 

se% 

161 

5 

<% 


CmClr 1J8 19 

142 56 

54% 

56 +1% 

50 

24 

22% 

23% +1% 

CmcFrS 4 

135 10% 

V| 

10 - % 

10 6S9 

18% 

18% 

iea. 

CmiShg J6 13 

307 127, 

12% 

12% — % 

13 490 

M 

13% 

tt%+ % 

CotndE 

0423 1-16 2 11-16 2 13-10 -3 


370 47, 4% 4%+ % 

7 2S9 10% 10 10%+ % 

20 615 11% 11% 11% ' 

4 374 JS% 25% 25% - % 
*. 651 "11% «%" -11% + % 
33 -10% TO 16%+ % 
11 » 0 • 07, TO, — % 

71 445 22% 11% 21% -1% 
330 13% 12% 13 - % 
122 264 t0% 18% «%- % 

300938 » 34% 25%+ % 

244 12% 11% 12£+ % 


BKNE 1-24 
Bnkaets A8 
BokgCb-JOa 
Santa .44 
Barrls 


BayVw 
BoyBfts1A4 
BeautiC 
Baabat D3s 
BeBSv 
BanlSv 
BerWay JB 
BerkHa 
BatzLb 1J2 
QgBear t 
Bfnriy 
Slogan 

BkOTtet 

BlaTGh 
BlrSd 
BfcdfEn 
BoatBn 194 
BobEvn J4 


BonHP 
BowScs 90 
BatnPC .48 
Branch 1 J8 
Brand DO 
BrkwioDSa 
Bmkmn 
Brunos JO 
Budget 
Buttes 
BulldT 
Bmhm 94 
BunBs 
BMA 1.W 
Buainid 

CCC 

COC 

CPS .16 

CUCM 

CVN 

CbrySclJZ* 

Cadnf* 

CaJgon D5a 

CalBJo 

CafMlC 

Criny -16 

Cambnt 

CamSS 

Canon l 32b 

Cano nig 

CareerC 

CartCm-TOa 

CaringW 

Caseys 

CatoCpDZ* 

Cal tCmo 

CfttrSc 1-60 

Cenfcpr 

Cntkw 

ConBcsi-TOb 

CtrCOp 

CFidBkl-08 

CtyCmS 

Cetus 

ChrmS® .12 

Chrtwb 

ChkPl 

Cherolri 

ChiChi 

ChOockJOa 

ChfAut 

CWdWid 

ChHIa 

CTUpsTc 


10 435 7% 7% 7%+ % 

2 476 57, 6% 5% 

7 67 H 14 14 

011 12 11% 11% - % 

IS 300 19% 19 19% + % 

TO 278 9% 9% 0% 

215405 10t« 9% 9%- % 

5 24 23 22% 22% — % 

22 10556 38% 36% 36% - % 
78 9% 3% 6% — b 

25 1587 19 17% 10 - % 

434 (4% H M%+ % 

W 404 6% 5% S%- % 

48 50B 30% 20% 30 

IS 515 H% 13% 13%- % 

13 1696 20% TO% T0%+ 7, 

11 *404 23% 2TO* 22% -1% 

M 1246 29% 20% 28 + % 

W 2S2 8% 0 81*- % 

222BSB 18 10% 17%+ % 

004116-10 113-16 115-16 
18 839 8% 8% 8%+ % 

B B 

421 5 4% 41* 

70 30 37% 38 + % 

8 198 0 % 6 % 6 %+ % 

4 235 13 12b «b- % 

13 1691 12% 11% 12%+ b 

10 21 22 21% 22 +1 

9 400 50% 50 50%+ % 

8 IBS 7% 7% 7i,+ % 
B 2686 24 23% 24 + % 

8 77 TO, 8 8% — % 

226 12% 117, 12 + % 

W 254 15% 14% 15 

3 222 7 0% TO, + % 

12 242 21b 31 31b 

5 2M 13% TO 13%+ b 

7 184 35 34% 35 ♦ % 

9 7 57, 5b 5%- % 

10 4 TO, 97, 97,+ % 

13 10 W 10 

170 5 4% 47,+ % 

6 663 23% 22b 23% + b 

20 0 8200 3025 3050 + 25 

17 425 42 41 41% - % 

11 28 16% 18% W% 

9 3TO 7% 7% 7% 

2307 5 4% 4%- % 

24 916 17 16% 17 

570 5% 4% 5%+ % 

0 26 16% 18% 18% 

45 215 18% 17% 18 

8 106 32% 37% 33% 

20 452 16 15% TO% 

6 168 13% 12% 12% - % 

IS 151 7% 7" 7 - % 

6 553 15% H% 15% +1% 

9 391 16% T7% 17% 

8 51 23% 201* 29% - % 

03 10% 10 10% + % 

“ “ 4% 45-16+ 1-ICl 

TOs 8% + % 

1 ?£+ % 

32 80 15% M 14% 

9 435 10% 9% »%+ % 

11 264 15% 14% IS 

8% 6% -% 
34 34 — % 

7% 71,- % 


23845-18 
0 8 8% 

22 702 10% 18% 
9 71 TO, 9% 


23 145 7i« 

42 96 34% 

TO 945 7% 

c c 

17 M9 TO* 6% 0% 

2 13% 13 13%+ % 

12 1257 TO Hi, H%- U 

113203 U% H M%+ % 

352 TO TO, TO, - % 
19 200 s5y 30% 30% + % 
M 70S S% 5% B%+ h 

IB 270 30% 20% 301, +1% 
165 71* 6% 7%+ % 

153 5% 5 5%+ % 

72 10% 10% 10% 

529 H 13% 13% 

787 6 5% 6% - 

19 134 36% 34% 34% + % 

25 278 21% 20% 21 + % 

TO 56 9% 0% 93, 

20 175 18% 18% 18%+ % 

375 TO (713 13% -21, 

16 747 13% T1% 12% - 

15 52 41, 4 4 

1313 15% 14% 15 +1% 

11 43 32% 32% 32%+ % 
750 24% 22% 23%+ % 

16 81 101* 9% 9% - % 

D 29 37% 30% 39% - % 

263 15% 15 15% + % 

B 382 20% 2S% 28% - % 
82 14% 14% H%+ % 
1665 13% 13 13% - % 

143427 14% 13% 13% - % 
29 582 0% 6% 9% + % 

15 154 6% 6 8 - % 

7% - • * 

7 


-J 5 


W 282 8 

1560 7% 

17 » 20% 19% 
3 388 6% 6 

12 416 » 


k*" 

VA 

TC% 10% - % 


19 38 23% 23% 23% 

11 809 1TO* 12 12 - % 


Sack Sates Wgh law Iwt One 

(Hnte) 

Chiron WB1 14% 13% H 

ChrOwl 92 23 MS 13% 13% 13% 

CtonFMJZb 9 (29 46% 4S% 46 - % 
CJrttxss 23 203 20 25% 25% + % 

Cipher 201272 TO, 6% 5% 

ClrdEx 0 45 6 5% 5% + % 

CczSoCpl.12 W 1580 23% 23% 23%+ % 
CtzFGs 6B 7 427 14 13% 13% - % 

CuU As 09x263 27% 25% 20% 


CecnSvgJ4e 

CnipCfS AO 

CCTG 

QplAid 

Cneptts 

CnsPapl.00 

Cfl Med 

Contbi 

CtriRs 

Convgt 

Convex 

CooprO 

CooreB JO 

Cegyflaa 

Cords 

CoreSc 1J6 

COMOO . 

CrzyEd 

Creator 1.01 

CretFdf 

Cronus 

CrOSTr 

CroridS AO 

Crate pf 191 

Culums JO 

Cyprus 

CypSam 

Cynxpi 

DBA 

DEP 

DMA PI 

DSC 

OrisySy 

DartGp .13 

DtolO 

DlSwKfi 

Dampy 


2S8 1TO* IS 15%+ % 

W 739 WU 0% 0%-lU 

461 0% 5% TO, 

24 334 TO, 7% TO, +1 

22 20 12 % . 11 % «% + % 
11 31 '54% .. 03% 533* - % 
57 258 9% 0 fl%- % 

M 80 M 12% 13% — % 

SB TO* B% 6% - % 

252637-16 33-18 33-16 
201271 TO, 6% 6% + % 

75 6% fl 6% — % 

13 471 18 17% T7%- % 

241 TO, S% 5% — % 

638 10 % 9% 10 + % 

0013 30/, 30% 30% - % 
651009 9% 6% B%+ % 

1127960 2% 2 2% — % 

10 212 22% 217, 21% — % 
131 9 63* TOs 

15B 12 11% 11% - % 

40S 13% 12% 12%- % 

890 n%d«* 9 - % 

5B 15% 15% 15% 

13 64 15% 15% 15%+ % 

204935 1TO, 177, 18%+ % 


341420 9% TO* 

255 « d TO* 

D D 


TO, - % 


12 40 1<% 
24 


« U - % 
1 11 % 11 % 11 % 

~ 0 4% 5 + % 

«% 


161527 4% 

2745 7 

7 a 7S 
251087 6b 
66 538 5% 

M2 47, 


f; i 

77 -1 

6% 

B%- % 
4% 


DauphnUO 
Daxor 
Daystn 
DobShs JO 
Dakalb J2e 
Deal 
Devon 
DtagPr 


17 99 25% 24% 24%+ % 


■a 


9 24 26% 

9 37 0 

25 278 6 

11 431 W 
W 941 22% 217, 

400 4% 

9 11% 


26 + % 
5% 

0 

4 4 - % 

11 % 11 %-% 


20 63 29% 20 26 -1 


Dionne 

H4B15 

1% 

1% 

1 11-16 -1- 

Dtoeon 

17 230 

28% 

281, 

28% + % 

DfgOCm 

11 958 

24% 

24 

24%+ % 

DlgMc 

37 W3 

Ml* 

13% 

M + % 

DktwCTJO 

44 

12 

11% 

11% - % 

DimeNY 

Dtonexs 

DttteYr.401 

5 942 
2T 232 

6 130 

15% 

St 

15 

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Continued on Page 43 


0 


Financial Times Tuesday November 17 1987 


WORLD STOCK MARKETS 


FINANCIAL TIMES 


AMERICA 


Pessimism oyer budget stems rally 


WALL STREET 


CONFUSION and pessimism over 
Washington’s budget deficit reduc- 
tion negotiations undercut a modest 
morning equity rally on Wall Street 
yesterday, writes Roderick 
Oram in New York. 

Credit markets were similarly 
unsettled after the talks prognosis 
appeared less optimistic than Presi- 
dent Ronald Reagan had indicated 
over the weekend. 

The Dow Jones industrial aver- 
age dosed up 14.09 points at 
1,949 JO compared with a gain of 
nearly 35 points shortly after the 
opening. 

Broader market indices Mowed 
suit with the Standard & Poor’s 500 
dosing up 1.12 at 246.76 and the 
New York Stock Exchange compo- 
site index edging up 0.56 to 138J6. 
The over-the-counter composite in- 
dex slipped by 0 JO to 32L37. 

New York Stock Exchange vol- 
ume was relatively light at 164Jm 
shares as investors waited for a res- 
olution to the budget talks. Advan- 
cing Issues outnumbered those de- 
clining by 866 to 690. 

Takeover candidates dominated 


the most active issues. Bell and Ho- 
well advanced $3% to 561%. An in- 
vestor group Led by Mr Robert Bass, 
a Texas investor, is seeking permis- 
sion to raise its stake in the pub- 
lishing and information re trieva l 
equipment manufacturer to as 
much as 25 per cent from 16.2 per 
cent 

Mr Robert Maxwell, the UK pub- 
lishing m a gn a te , has said he will 
seek to boost his Bell and Howell 
stake to 50 per emit In addition. 
Macmillan, a US publisher which 
gained 5ft to S47% yesterday, has an 
8 per cent holding. 

HarcOurt Brace Jovanovich edged 
up SK to 55% after it had announced 
the sale of a magazine publisher 
and school supplies business for 
5344.1 jxl The publishing group said 
the disposals completed its asset 
sales which will help reduce its 
heavy debt load incurred earlier 
this year fighting off a takeover of- 
fer from Mr Maxwell. 

Fan Am gained $K to S3% on 
heavy volume of more than 850,000 
shares as several suitors intensified 
efforts to launch a takeover offer 
for the airline. A coalition of Pan 
Axn's u ffb” 18 bag been h o l d ing talk* 
with representatives of the Pritzker 
family of Chicago with a view to 


joining in the haling and Tower Fi- 
nancial urged unions to join its at- 
tempt to make an offer. 

Singer added 51% to 549%. The 
aerospace electronics group reject- 
ed a $50-a-share offer from Mr Paul 
Bilzerian, a Florida investor, and 
said it would pursue alternative res- 
tructuring proposals or takeover of- 
fers. 

CNW gained 51 to 524. Gibbons, 
Green, Van Amerongen raised its 
leveraged buyout offer for the Chi- 
cago-based railway bolding compa- 
ny by SI a share to S3L 

Pennwah rose 51% to 542% after 
it had received approval to market 
a drug to relieve high blood pres- 
sure. It will compete against Dia- 
zide made by SmithKline Beckman 
which added S% to 548%. 

Credit markets lost some of their 
modest overnight gains after deal- 
ers and investors had become un- 
certain about the progress of bud- 
get talks. By fete afternoon the 
Treasury's benchmark 8.75 per cent 
30-year bond was up ‘fe of a point 
at 99% yielding 8.89 per cent Short- 
term rates were edged slightly low- 
er with, for example, three-month 
Treasury bills falling six basis 
points to 6.01 per cent 

The Fed funds rate at which 


banks fend reserves to other 
was relatively high at 7 per cent, 
roughly half a point above the Fed- 
eral Reserve's apparent target The 
k ey sh ort-tarn interest rate was 
boosted, however, by the heavy pay- 
ments due yesterday for Treasury 
securities bought at the November 
quarterly refunding. The Fed nu»fr 
system repurchases to ease the 
pressure, and the rate is expected 
to drop back to around 6% per cent 
The 0.6 per cent rise In industrial 
production in October was sh'ghfly 


ed but had no impact on credit mar- 
kets. 


CANADA 


TAKING A lead from Wall 
Street, stocks in Canada 
advanced broadly, holding on to 
most of their early gains. 

Golds were mostly higher, 
with Lac Minerals rising Cal to 
C$11 ft, Placer Dome finning 
CSV* to CSlfife and Echo Bay 
gaining C$ft to CS2S¥*. 

In energy issues. Shell Canada 
advances Cift to C$32ft and 
Imperial Oil class A moved 
ahead CSVfc to C$56%. 

Mines posted Inroad gains. 


EUROPE 


Blue chips rise cautiously on dollar, 


YET AGAIN investors in Europe 
looked to Washington for con- 
crete signs of action to reduce 
the US trade deficit. While the 
firmer dollar provided an impe- 
tus for gains in blue chips, there 
remained an undertone of wari- 
ness regarding longer term pros- 
pects fo r the US c urrency. 

FRANKFURT turned cautious 
over the medium-term direction 


LONDON 


of the dollar, turning the strong 
opening into a mixed dose. 


opening into a mixed dose. 

The midsession Commerzbank 
index rose 25.5, or 1.8 per cent, 
to 1,404.5 and the Boersen-Zei- 
tung index dosed 1.84, 0.6 per 
cent, higher at 291.11. 

Export-oriented sectors bene- 
fited most strongly from the dol- 
lar's ascent. In cars, VW rose 
DM8.20 to DM275.20 and Daimler 
and BMW gained DM5 apiece to 
DM710 and DM456 respectively. 

In banks, Deutsche gained 
DM7 to DM467 and Dresdner 
added DM2 to DM246, but Bayer- 


LATER eesaton doubts over 
prospects for action on the 
US budget deficit and the 
chances of .<3-7 meeting 
sliced early gains In equi- 
ties. After a 66-point dim, 
the FT-8E 100 index ended 
6.4 np at 1,684.7. 


nhypo dropped DM10 to DM318. 
Public authority bonds an< 


Public authority bonds and 
Marie Eurobonds moved lower in 
dull trading. The Bundesbank 
bought DM1 14m of paper after 


Activity focused on Unilever 
which reported a 25 per cent 
increase in pre-tax profits for the- 
third quarter. The share price 
rose to a day’s high of FI 116 
before profit-taking pushed it 
back to F] 111.50, a net gain of 
FI 450. 

Blue-chips were all higher 
with Aka adding FI 4 to FI 07.0, 
KLM rising FI 1 to FI 31.0, Phi- 
lips firming FI 1.10 to FI 32.10 


Chemical shares finned and 
Sandoz advanced 7 per cent or 
SFiOOO to SFrl2JXX). 

Among insurances, Swiss Re 
and Winterthur put on 6 per 
cent each to SFr 1,850 and 
SFr-1,950. 

PARES finned on expectations 
that an agreement on US budget 
deficit cuts was imminent but an 
underlying mood of caution 
prompted a bout of late profit- 
taking. The CAC index rose 102 
to 3025. 

Leading blue chips .were off 
their highs with Cie du Midi up 
FFr39 at FFr007, after touching 


FFr922 and Lafarge Coppee 
FFr124 up at FFr1,216 after 


r rTi24 up at FI 
reaching FFr1,237. 


and Royal Dutch dosing up FI 
5.30 at FI 209.80.' ■' 1 - : ' . 


selling DM1 13.2m on 

AMSTERDAM < 


AMSTERDAM climbed in 
reaction to the steadier dollar 
but volume remained low as 
many investors waited for posi- 
tive moves to reduce the US bud- 
get deficit. The ANP-CBS index 
rose 12 to 280.6. 


ZURICH responded enthusias- 
tically to the stronger dollar as 
some blue chips posted rises of 
up to 8 per cent early in the 
session before succumbing to 
profit-taking. 

Financial and industrial shares 
put in a good showing but banks 
were mixed. 


Construction stocks recovered, 
from recent heavy falls. 

BRUSSELS followed other 
European bourses higher with 
gains in blue chips underpinned 
by the fitnwr dollar. The cash 
market index rimwi 10L53 to 
SMHNL84 in moderate trade. ' 

Retailers were broadly higher 
with GB up BFr>$3 to BFrt&O and 
Delhaize adding BFrl90 to 
BFr3,060. 

In holdings. Reserve • the 
share of Sodefee Generate de Bel- 
gique - rose BFr95 to BFr2.415i, 
and Sofina added BFrl40 to 
BFr9,690. 

STOCKHOLM rallied cm the 
stronger dollar and expectations 
of a reduction in the US budget 


deficit. The Affaersvaerlden 
index rose &3 per cent to 708A 
in moderate trading but late 
profit-taking trimmed early 
gains. 

In blue chips, Volvo climbed 
SKrl4 to SKr277, Saab-Scania 
added SKr8 to SKrl74 and Elec- 
trolux was up SKr6 to SKr225. 

OSLO was also encouraged by 
a change in the direction of the 
US currency and hopes of US 
budget moves. 

The all-share index advanced 
23.78 to 380.18 in moderate tum- 
o ver. 

HELSINKI moved higher in 
slow, lacklustre trading with 
some foreign selling curtailing a 
broader advance. Tne Unites all- 
share index climbed 17.8 to 573.4 
as banks signposted the way 
higher. 

MILAN saw an active session 
on the last day of the November 
cycle and underlying optimism 
lifted share prices despite the 
resig n ation of the wH""" gov-u 
eminent on Saturday . i 


Blue chips, were broadly 
higher, insurers performed weft 
but holdings ended mixed. 

MADR I D firmed in thin trad- 
ing as many investors were side- 
lined awaiting this week's 
release of consumer price index 


figures for October. 

The general index advanced 
2.67 to 226.39 as construction 
issues built on recent strength. 


Measuring world performance 


AS PART of a drive to 
improve the coverage of 
international equity mar- 
kets, the FT-Actnaries 
World Indices will from 
today be found on the same 
page as the world stock 
market reporte. writes Rich- 
ard Lambert. The Idea is to 
facilitate direct compari- 
sons between the daily per- 
formance of different finan- 
cial centres. 

The World Indices axe 
constructed on a common 
formula, share a common 
base date, and are calcu- 
lated cm the same currency 
rates. They are also based 
on the shares of companies 
which are actually available 
to international investors. 

For the international 
portfolio manager, they 


give a tench more accurate 
picture of how different 
markets are moving than 
can be drawn from the 
long-esta bl i s h ed local msr< 
ket indices. 


at the end qf October. The 
US, which until recently 


for nearly half of 
'a capi tails* ti ® @ 


the world's capitalisation, 
had slipped back to SB J. per 
cent of the World Index at 
the same date. 


This has been especially 
important in the past few 
weeks. Although equity 
markets have fallen across 
the world, some have done 
much better than others; 
Tokyo has by little 

more than a tenth since 
mid-October w here a s , at the 
other extreme, Australia 
has dropped by more than 
two fifths. 


As a result, Japan is now 
easily the world's biggest 
capitalised market, repre- 
senting S8JS per cent of the 
World Index in dollar terms 


The indices are compiled 
by the FT, Goldman, Sachs 
A Ckk, and Wood Mackenale 
■St Ca, in conjunction with 
the Institute of Actuari es 
and the Faculty of Actu- 
aries, with each of tike three 
operating partners being 
responsible .for price and 
capital data from different 
parts of the world. The 
series claims three special 
features. 


One is the speed of publi- 
cation; the indices are cal- 
culated every night immedi- 


ately after the close of the 
New York Stock Exchange 
which, unfortunately, pre- 
cludes its publication in 
early editions of the FT. 
An other is their breadth of 
coverage: they take in more 
than 2,400 shares, and aim 
to capture at least 70 pa 
cent of tiie equity market 
value of each country in the 
series. 

Finally, the management 
of the indices is in the 
hands of an independent 
panel, chaired by a repre- 
sentative of the Actuaries 
and indnding users drawn 
from oatstde investment 
management gronps. This 
panel Is responsible for all 
decisions on ehsngra in the 
indices, which are published 
promptly in tire FT. 


FT - ACTUARIES WORLD INDICES 


Jointly compiled by the Financial Thno, Co hfo an , Sachs & Ccx, and Wood Mackenzie & Co. 
LhL, in conjunction with Are Institute of Actuaries and the Faculty of Actuaries 


NATIONAL AND 
REGIONAL MARKETS 


MOMMY NOVEMBER : 


FUMY NOVEMBER i 


DOLLAR INDEX 


n*irw in SMrmOwse 
show Dumber of stocks 
per grouping 


Currency 

Index 


Load 

Currency 

Index 


Australia (89) 

Austria (16) 

Belgium (48) 

Canada Q27) 

Danmark (38) 

Frame 020) 

Wot Germany (93) 

Hong Kang (46) 

Ireland (14) 

Italy (94) 

Japan (458) 

Malaysia (36) ■— — 

Mexico (14) — 

Netherland (37) 

New Zealand (23) 

Norway (24) 

Singapore (27) 

South Africa (61) 

Spain (43) 

Sweden (34) 

Switzerland (S3) 

United Kingdom (332). 
USA (582) 


Wellington 
continues 
its belated 
comeback 


Nikkei sustains advance 

on speculative buying 




NEW ZEALAND’S share mar- 
ket reassuringly extended Fri- 
day’s gains yesterday after 
prices had tumbled to. a 20- 
month low during last week 
and unsetilingly ignored recov- 
eries in overseas markets, 
writes Dai Hayward in Weir 


TOKYO 


The Barclays index picked 
up 27.74 points to dose at 
2,248.24 as active buying 
extended the 74 point leap 
made on Friday. 


Before Friday's surge, how- 
ever, the market had slumped 


81 points on Wednesday ami a 
further 72 cm Thursday, taking 


further 72 cm Thursday, tal 
the Barclays index to a 
month trough of 2446. 


A worrying factor of last 
week's declines was than they 


ignored the backdrop of 

thier overseas markets. In 
addition, the futures index 
indicated worse falls to come. 


indicated worse falls to come. 

However, Friday's- shopping 
spree continued yesterday, aim 
rises included Goodman 


Fielder, 6 cents higher at 
NZS&80, New Zealand Forests, 
5 cents up at NZ53L57 and Bri- 
erly Investments, 2 cents up at 
NZ$3.57. Carter Holt, however, 
slipped a further 9 cents to 


Mr Bob Jones, dmlrman of 
Robert Jones, the properly, 
investment company with 
international holdings, fore- 
casts that the Wellington zuai> 

. ket will divide into two levels, 
with most activity and con- 
fined to the country's top 10 
companies. He said, though, 
that some companies now 
listed would go to the wall. He 
also predicted 'rich pickings* 
for takeover enthusiasts or 
bargain hunters. 

Buying may also receive 
some support in the longer 
term as a result of earner 
domestic Interest rates. 


SELECTIVE buying inphar- 
maceoticals and a spattering of 
speculative buying nudged 
Tokyo prices to a further rise 
yesterday in thin trade, writes 

ShdgeoNishiwaJa qfjffi Press. 

The Nikkei average rose 167.18 
to 22,615.43. Volume fell to 
292.15m shares from 623.28m on 
Friday. Risers led falters by by 
568 to 295, with 139 braes 
unchanged. 

The market was still cheered 
by the lower September US trade 
deficit, but not helped by the 
dollar’s rise or signs that a US 
budget deficit package may be 
near. 

Japan Synthetic Rubber 
headed the actives with 20.69m 
shares on sp eculati ve interest, ft 
rose Y24 to Y772 mi reports it 
has developed a flexible battery 
with Matsushita Electric Indus- 
trial 

Ajinomoto climbed Y70 to 
Y3550 on possibilities of a treat- 
ment for AIDS. Good figures sent 
Nljr^on Hodo Y40 higher to 

^oxiy soared Y150 to 74,700 as 
other high-tech electricals 
opened firm, but dipped later. 
Matsushita Electric Industrial 
rained Y20 to Y2J220 but closed 
Y10 lower at 72,190. NEC fin- 
ished unchanged at YL980 after 
advancing 740 bo 72,020, Fujitsu 
fell 720 to 71,210, while Fuji 
Photo Film closed off Y30 at 


Tokyo 

rakei Average (TOO) 
27 


Dollar against 
the Yen 



Nov Jun 


HONG KONG 


AS OVERSEAS selling began 
to tail off and buying spread 
broadly through the market, 
Hong Kong prices rose strongly 


in moderate trading. The Hang 
Seng index dosed 84.12 higher at 
2,310.80. 

Properties flourished, Sun 
Hung K&i adding 55 cents to 
HK59, New World Development 
40 cents to HK5756 and Hang 
Lung Development 35 omits to 


index rising 21.% to 844.19. 

Blue chips dominated. City 
Development topped the actives 
to gain 3 cents at S52.09. 

National Iron was 30 cents 
higher at S54.96, Fraser and 
Neave climbed 25 cents to SS755 
and Inchcape put on 18 cents to 
S53.36. Singapore Airlines and 
■Singapore Press both added 15 
cents to S57 and S53.34 in turn. 


<*ht 


AUSTRALIA 


Hong Kong Telephone led util- 
ities higher, adding 50 cents to 
HKS1250, while Hragkong Elec- 
tric rained 25 cents to HK57B5L 
Hongkong Rank zose 5 cents to 


TAKEOVER speculation gr- 
ounding underpinned a modest 
gain in Sydney share prices. The 
All Ordinaries index dosed up 17 
at 1,2922. 

Robert Holmes a Court's Bell 
Group and Bell Resources rose 15 
and 25 cents respectively to 
-AS2.10 and AS 1.65 on specula- 
tion of a passible bid for BHP, up 
6 cents to AS7.30. 

Resources were mixed, with 
Peko down 20 cents to AS5.60 
but Western Mining adding 16 
cents to AS5.24. Golds were 
selectively bought. Sons of G wa- 
lla adding ASl to AS7.50. 


With Investors, particularly 
smaller ones, having deserted 
the stock market, banks have 
large deposit funds for which 
there are few borrower s . This 
has put heavy pressure on 
wholesale money rates, and 
trading banks last week 
dropped their interest rates for 
corporate lending. 


Five year government stock 
interest rates fell below 16 per 
cent for the first tune In four 
months. 


Sumitomo Bank rose 780 to 
73,280 and Mitsubishi Trust and 
Banking 760 to 73,060. In securi- 
ties houses Nomura Securities 
added 740 to 73,440 and Dalwa 
Securities rose Y60 to 72,140. 

In pharmaceuticals, Yamanou- 
chi Pharmaceutical rose Y110 to 

Y3.610 and Shionogi 750 to 
Yl,4Ea 

Bonds fell further in thin trade 
as the dollar's climb prompted 
small-lot sales. 

The yield on the 5.1 per cent 
Government bond due in June 
1996 rose to 5.190 per centfram 
4.970 per cent on Friday, with 
the day's low at 5.060 per cenL 

Prices continued to rise an the 
Osaka Securities Exchange on 
selective interest in small stocks. 
The OSE stock average closed 
210.49 higher at 23,003.49 on 
turnover of 33.48m shares, down 
29.22m from Friday. 


SINGAPORE 


BARGAIN-HUNTERS lifted 
Singapore share prices broadly 
higher in moderate trade, with 
the Straits Times industrial 


A RALLY from opening lows led 


by gold and mining house issues 
lifted Johannesburg shares in 
quiet trade. 


dipped R1 to R309. 
In mining fina 


Within golds. Harmony man- 
aged a 75 cent rise to R37 and 
Harties ended 25 cents up at 
R22-50. Western Areas added 50 
cents to R16 and Raxidfonteitt R& 
to R300. Vaal Reefs, though. 


In mining financials, Anglo 
American hardened R2 to R69, 
with Gencor and Gold Fields of 
South Africa steady at R55 and 
R5Q in turn. Diamond share De 
Beets . rebounded 75 cents to R3G. 
Platinums joined the firmer 
trend. Impale adding 50 cents Yo 
R2&50L 


Company Notices 


ECU 20.000.000 

SOC3ETES DE DEVELOPPEMENT REGIONAL 11 1/8 % 1983/1990 


We inform die bondholders that the redemption instalment of ECU 4.000.000-, nominal due on 
decemb c r 20, 1987, has been satisfied by a drawing on november 5, 1987, in Luxembourg. 

The bands will be reim b ur sed at par on december 20, 1987, coupon due on decembcr 20, 1988 
and following attached, according to the modalities of payment cm the bonds. 

The numbers of such drawn bonds are as follows: 


7173 to 8006 and 12037 to 15172 


Tim following bonds, called for redemption on dec e mbcr 20, 1986, have not yet been presented 

fix the payment: 


8037-8039 

8050-8056 

8063 - 8067 

8073 - 8086 

8098 - 8112 

8133 - 8136 

8158 - 8165 

8187-8189 

8194-8230 

8234-8275 

8284 - 8298 

8301 - 8361 

8394 - 8424 

8432 - 8436 

8441 -8463 

8485 - 8494 

8496-8512 

8520-8522 

8593-8596 

8618 - 8655 

8657 ‘ 

8663-8666 

8718-8739 

8765 

8770 - 8803 

8849 - 8854 

8877 - 8930 

8936 - 8955 

9051 -9065 

9126-9161 

9170-9180 

9230 - 9246 

9291 -9308 

9366 - 9390 

9401 -9444 

9454 

9457 - 9471 

9478 - 9486 

9500 - 9502 

9507 - 9509 

9514 

9525 - 9533 

9547 

9559-9605 

9633 - 9635 

9713-9725 

9756 - 9761 

9768 - 9775 

9786 - 9787 

9789 - 9793 

9801-9810 

9861 

9882 - 9894 

9902 - 9910 

9934 - 9963 

9975 - 9984 

10016 - 10043 

10048 - 10051 

10053 - 10055 

10059- 10091 

10097 - 10103 

10121 - 10123 

10125-10129 

10252- 10260 

10265 - 10271 

10277 - 10310 

10318 - 10322 

10330 - 10351 

1Q363 - 10453 

10456 - 10457 

10479 - 13481 

10493 - 10495 

10586- 10595 

■ 10624 

10628- 10631 

10634-10635 

10690 

10720- 10722 

10730 - 10752 

10769- 10778 

10785 - 10793 

10804- 10806 

10812 - 10813 

10816 - 10825 

10832- 10833 

10844- 10863 

10890-10903 

10911 - 10943 

10945 - 10948 

10954-10959 

10976 - 10986 

10994 - 10995 

11000- 11031 

11042-11070 

11076- 11079 

11111 - 11135 

11147-11154 

11156-11163 

11223-11243 

11268-11293 

11344- 11352 

1 1371 - 11372 

-1 1414 -11416 

11431 - 11452 

11501 - 11522 

11533 • 11540 

11554- 11565 

11580-11618 

11623- 11625 

11627 - 11656 

11658- 11663 

11665- 11674 

11683- 11690 

11692 - AL741 

11794- 11799 

11808- 11811 

11814- 11821 

11845- 1 1851 

11864-11903 

11906- 11999 

12010 - 12036 

% 




Amount outstanding after december 20, 1987: ECU 12.000.000,- 


THE PRINCIPAL PAYING AGENT 

SOCIETE GENERATE ALSAOENNE DE BANQUE 
15, Avenue Emile Reuter 
Luxembourg 


Europe (946) 

Pacific Basin <b74) 

Euro- Pacific (1625) 

North America (709) ....... 

Europe Ex. UK (614) 

Pacific Ex. Japan (221) ™ 

World Ex. US (1827) 

World Ex. UK (2077) — 
World Ex. So. Af. (2348). 
World Ex. Japan U951) - 


The World Index (2409). 


Bast valMK DtC 3J, M8fc - 100 

CopyrttR, The ftawdn Ti*** CofetM, Sad* A Co, Stand 

AmctSoHtsiDiMSeKforNotwbirUtoMlaSwIaaMl 


Mlriutiit ACx, U419P 
iaodMUAIrtaMfcnaloB 



PROPERTY TO RENT 

From 26 th October 


Classified Rentals will appear every 
Monday 

For details of how to advertise pie&se contact 

Clive Booth 

Telephone: 01-248 5234 
' - Fax: 01*248- 4601 







CONTENTS 


■-fTpr D Italy has undergone an 
H | q 3 economic renaissance 
™ 1 — ^ in the last few years. 

The financial system is 
modernising, albeit 
slowly. Now, however, problems such 
as runaway public spending threaten 
the short-term outlook, as Alan 
Friedman reports here. 

Clouds on 


IN RECENT YEARS It lias be- 
come the vogue In international 
financial circles to speak of the: 
renaissance of the Italian econo- 
my, and with good reason. 

Italy has enjoyed one of the 
fastest GDP growth - rates in 
Western Europe, inflation 
dropped substantially in the 
1983-1086 period and huge state 
industrial concerns, -such as Dll 
and ENI began to bring their 
losses under control, and last 
year even turned in small prof- 
its. The country’s p rivat e sector 
industrial concerns, meanwhile, 
have , been reaping the profits 'of 
major restructuring and cost re- 
ductions. • 

At the same time the Milan 
bourse went through * boom in 
1985-86 that not only saw signifi- 
cant growth in the - overall mar* 
ket capitalisation and number of 
quoted shares, but far the first - 
time provided companies with a • 
cheap alternative, to expensive 
bank debt. Italian entrepreneurs 
then went abroad and made ac- 
quisitions and joint ventures 
that gained the enthusiastic at- 
tention of investors in Wall 
Street, Tokyo and the (Sty of 
London. 

The pace of deregulation in 
the financial markets and on the 
sticky question of exchange con- 
trols quickened and even the 
previously lethargic and predom- 
inantly state-controlled banking 
system showed sign a of learning 


the merits of competition. And 
during the three-and-a-half years 
of. the Craxi government Italy 
appeared to have almost discov- 
ered the virtues of something 

Now^there are^cCouda on the 
horizon, and while several of the 
economy’s fundamentals still 
look WMMHMiahly a nCOUttg falg, it 
is dear that the next 12 months 
will be increasingly difficult far 
the public and private sectors, 
for the stock, exchange, for the 
banka, and, as a result, for Italy’s 
recently earned reputation as a 
more serious player in the big 
league of the world economy: 

It is not just the obvious weak- 
ness and confusion of the fragile 
five-party coalition government 
of Prime Mi ni ster Giovanni Gbr- 
ia that makes Italy-watchers 
scratch their heads and wonder 
whether the discovery of a ‘New 
Italy’ might have been a trifle 
premature. Politics, however, 
does play an important, even 
pervasive, role in the. life of the 
national economy, and during 
the. Craxi years it became dear 
that strong leadership, such as 
that seen m the slashing of the 
sc ala mobile wage indexation 
system in 1084, could make 
something of a difference, as 
much in psychological as in mar' 
term! terms. 

As for the Italian, macroeco- 
nomic outlook, the GDP growth 
rate (see table)- does not look 


□ Prim* Minister Giovanni Gor- 
h, (left), Isas had a rough tfcna 
with Ms Government's budget 
proposals. -MeanwhRf, Mr Car- 
lo AzagHo Cfarapf (right), gov- 
wrKK of the Bank of Italy, baa 
warned of rising inflation. > 


.ECONOMY AND FINANCE 


bad. Official forecasts are higher, 
but even so the- projection or pri- 
vate economists of growth of 5L8 

r tr cent -this year and 'perhaps 
5. per cent .is reasonable 
enough. The big worries concern 
first and. foremost the country!s 
runaway public spending and 
huge deficit, then the negative 
impact on the trade balance- of 
both rising energy prices (Italy is 
80 per cent dependent on im- 
ported energy) and the comatose 
US dollar, and last, but by no 
means least, dear signs of rising 
inflation and an upward tenden- 
cy in interest ra t e s. 

The above elements are the 
•principal storm clouds on the 


Italian economic horizon. Taken 
on 'their, own they need not 
mean .that Italy Is about to suffer 
■greatly' - the North and centre of 
' the country are still growth re- 
gions which may fairly be called 
the sunbelt of Europe. But in the 
global context of potential race*- 
sibrv -stagnant trade and volatile 
financial and currency markets 
thie Italian economy’s habitual 
vulnerability risks being accen- 
tuated. Ironically enough, some 
■of the measures adopted to open 
up the Italian economy in recent - 
years could now make it more 
exposed to a downturn. The -tre- ' 
ditiona] problem of Rome’s coali- ! 
tion parties being unwilling Or' 


unable to cut public: spending is 
no longer . a . matter .to be 
shrugged off. Top bankers such 
as Enrico Braggiotti -of ' B&nca 
Commercial*? Itafiana '(BCI) and ' 
Nerio Nesi ef-Bdnca Nazionale 
del Lavoro (BNLy agree with the 
alarm expressed lit recent weeks- 
- by Carlo Cianvpi, governor of the 

* Bank of Italy, over the feeble 
’ 1988 budget proposal that was 

presented in September by the 
' Goria government. ' • ■ t 

Mr Ciarapi, while lacking- polit- 
ical clout, has finally blown the 
whistle on the politicians, and in 

• unequivocal terms. He has spo- 
s ken harshly against - the lack of 
. real spending, cuts contained in a 


1988 budget proposal that origi- 
nally would have seen the deficit 
rising from its 1987- level of 93 
per cent of the Italian GDP to 
100 per cent next year. The cen- 
tral bank governor went to par- 
liament and criticised the 
planned increase In value added 
tax as being a mechanical stimu- 
lant to inflation. And in private 
some officials rail against the 
manner in which other govern- 
ment ministers crippled the 
work of Treasury Minister Giufi- 
ano Amato by introducing other 
tax and fiscal measures that 
made the original Goria govern- 
ment budget proposal a national 
embarrassment. 


The economic scene; views on 'll 
Sorpassa* 2 

Interview with the Treasury 
Minister; developments on the 
stock market 4 

The Bank of Italy; profile of 
Bocconi University. 5 

Domestic and foreign banking 
activities in Italy. 6 

Developments In merchant 
banking; money market trends. 8 


Last month, in an unprece- 
dented move, the Senate budget 
committee simply suspended 
work on the budget and told the 
government to rewrite it. Some 
improvements have been made, 
but Italy’s pork-barrel politicians 
are still not willing to take firm 
action. The result is that Italy 
will next year have to raise 
something uke Lire 40.000bn a 
month to finance the 1688 PSBR 
and roll over existing public 
debt That means that in 1988 
the government needs to refin- 
ance 60 per cent of the total pub- 
lic debt stock, and this in turn 
implies increasing yields on 
Treasury bonds and in the level 
of interest rates that are already 
the highest in real terms in 
Western Europe. 

Mr Nerio Nesi, chairman of 
BNL, points out that, "while in 
the wake of the crisis in equity 
markets the prospects in most, 
other countries appear to be for 
a general decline in interest 
rates, In Italy we fear the oppo- 
site." 

The likely increase In bank 
rates will be further spurred by 
the decision in September to* 
reimpose the Italian corset or 
mossimole on credit expansion.' 
And the discount rate, which 
was cut by a half point to 11.5- 
per cent earlier this year, was 
raised back to 12 per cent again 
in September. 

At the end of September the 
average interest paid on deposits 
was 6.77 per cent while the aver- 
age corporate loan rate was 13.69 
per cent. These seemingly high 
margins are unlikely to prevent 
an expected fall in 1987 profits 
of between 20 and 40 per cent 
for many. banks. One reason is 
that margins are gobbled up by 
overheads that derive partly 
from overstaffing in the Italian 
banking system. Another factor 
is that the re-imposed corset will 
inhibit- lending to industry, and 
this is still where banks earn 
much of their Interest income. 
Finally, and most seriously, 
there will no longer be the hefty 
profits from securities invest- 
ments that saw a near doubling 
of bank profits in the 1984-86 
period. With the Milan bourse in- 
dex down around 30 per cent on 
last January the banks will find . 
themselves less happy at year- 
end. 

Another problem for the 
banks, that nobody likes to talk 
about, is the vague and unregi- 
mented accounting treatment of 
problem debts. According to 
BNL, bad debts represented an 


The growth in financial services; 
case study on theBenetton 
group- 9 

External borrowing; issues win 
investor appeaL 10 

Pension funds: the state system 
is in difficulty. 11 

Key economic data; banking 
neraoneOtv profile. 12 


average of 8.3 per cent of overall 
lending in the Italian banking 
system, as at last June. When 
calculated as a percentage or 
banks' capital the problem debts 
represented around 37.5 per 
cent. But there is no uniform 
reporting of bad debt provisions 
by Italian banks, ana nothing 
like a 30 or 60 day rule on inter- 
est not received. 

Inflation, meanwhile, was orig- 
inally supposed to dose 1987 at 

4.5 per cent (according to gov- 
ernment forecasts), with a simi- 
lar level in 1988. "The govern- 
ment's inflation forecasting," as 
one Milan banker put it, "simply 
lacked credibility." Indeed, the 
rate is already up to 5.3 per cent 
and the consumer price Index, 
according to the Bank of Italy, 
could well rise to six per cent by 
year-end. 

The expectation Is now that 
inflation could easily jump up to 

6.5 per cent in the early months 
of 1986 before coming down 
again. Only the doing away of a 
one per cent rise in Vat con- 
tained in the first government 
budget proposal will have helped 
to prevent an even more exten- 
sive rise. 

On the trade ftont Italian in- 
dustry is now contending with a 
dollar so weak that its exports 
are less and less competitive. In- 
ternal consumer demand has in- 
creased the level of imports as 
well, and the country's energy 
bill is still rising. According to 
Mr Ciampl the 1987 trade deficit 
now looks like it will total be- 
tween L12,000bn and Ll3,000bn 
against a 1086 trade deficit of 
L3/700bn 

The level of capital outflows 
should double to around 
L3,000bn to L4bn this year, 
helped by the liberalisation of 
rules on investing abroad. And 
the 1987 balance of payments 
current account should close in 
balance or with only a marginal 
surplus, against last year's L7bn 
surplus. 

The banking system is mean- 
while preparing for a Europe- 
wide market in 1992, but it still 
has a long way to go on the 
harmonisation of accounting, on 
the mortgage front, on payment 
cards and on the reorganisation 
of credit institutions, to dte just 
a few examples. 

And in the meantime the cen- 
tral bank has been pushing for 
legislation on the separation of 
banks and industry. At present it 
has little, more than symbolic 
power to implement its desire to 
Cootlmied on page 12 


F L E X I B L E I N D U SOI A L A U T 0 M A T I 0 N 






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II* 


( ITALIAN ECONOMY 2 ) 


Financial Times Tuesday November 1? 1987 


The economy 

Concern over the 
budget deficit 


AN IMF team came to Rome at 
the beginning of November to 
ca try out a factfinding check on 
the Italian economy and encoun- 
tered an administration in more 
than normal disarray. The Gov- 
ernment, or at least its Socialist 
component represented by Trea- 
sury Minister Giuli&no Amato, 
had just decided that the budget 
presented little more than a 
month previously would no Ion- 
go: do and that substantial revi- 
sions were needed. 

As a result, the IMF left Italy 
somewhat in the dark about the 
direction of economic policy and 
the assumptions underlying it. 
Shortly afterwards, it emerged 
that the Government had decid- 
ed to take seriously the risks of 
rising inflation and slower than 
expected world growth, and to 
cut its budget doth accordingly. 

Although the national mood- 
has moved distinctly downwards 
from the euphoric cloud of a 
year ago, it has not yet swung 
towards dark pessimism, ana 
neither would it be justified in 
doing so. Unless,. that is, the In- 
ternationa] economy takes a very 
serious turn for the worse under 
the impact of stock market cor- 
rections, currency instability and 
a serious downturn in the US. 

The market turbulence of mid- 
October and eariy November was 
Mr Amato's stated justification 
for seeking a revision of the orig- 
inal budget proposals. These 
were based on an expected 
growth rate in the OECD coun- 
tries of 2BSS next year and a 4 to 
4.5% rise in world trade. 

Any change far the worse in 
this estimated framework would 
have opened up serious cracks in 
a budget strategy postulated on 
reducing Internal demand from 
thb year's 4-5% to 3.1% but arriv- 
ing, nonetheless, at a broadly 
similar increase in 
tic 


gross domes- 

cproductcf 23%. 

Since government fore 
the world. over is often 


with optimism, corrective views 
abound which suggest that the 
1968 growth rate In Italy may be 


no more than 2 to 22%. 

But even before world stock 
markets and the dollar began to 
tumble, critics of the initial bud- 
get strategy quickly focused on 
the contradiction between rais- 
ing indirect taxes and achieving 
a targeted 4.5% inflation rate. 
The Bank of Italy was publicly 
sceptical about the forecast and 
there was more than a suspicion 
that the government needed 
such a figure to correspond to Its 
budget deficit target of 

L109'500bn. 

This is because much of its 
current expenditure is indexed 
to inflation and obviously sus- 
ceptible to its impact Pensions 
and public sector salaries, far ex- 
ample, are partially indexed and 
together with the health and 
debt servicing casts account for 
two thirds of annual current 
spending. 

Even before the world 
stock markets began 
to tumble, critics of 
Italy’s Initial budget 
strategy pointed out 
the contradiction be- 
tween raising Indirect 
taxes and achieving a 
targeted 4.5 per cent 
Inflation rate. The 
Bank of Italy was pub- 
licly sceptical about 
the forecast. There 
was also suspicion 
that the Government 
needed such a figure 
to correspond to Its 
budget deficit target 
of L109,500bn 


The impact of rising inflation 
on servicing more than 
L900,000bn of government debt 
accounts could be particularly 
Italian interest rates - 
highest in real terms 
In the European Community - 
would be bound to rise and with 
them the burden of debt pay- 
ments. 

The government’s revised bud- 
get abandoned the earlier plans 
to raise most VAT rates by one 
percentage point, despite the ac- 
companying lose of L3,000bn of 
revenue. It was calculated that 
the higher rates would add up to 
0.6 percentage points to an infla- 
tion rate which, disturbingly, 
had risen to an annual rate of 
53% fa October. 

The budget deficit target was 
also brought down to around 
L1O4.0Q0, partly by postponing 
adjustments to income tax rates 
for middle and low incomes and 
halving planned reductions in 
companies’ social security pay- 
ments. 

As a de c la r ati o n of determina- 
tion after a period of fumble and 
apparent lack of direction. Minis- 
ters also talked about a supple- 
mentary budget In 1988 which 
might aim to reduce the 
Btfll farther, to LlOO.OOObn. 

It has to be said that the Ital- 
ian political class is currently 
providing a fairly dismal man- 
at of Dublic finances. In 
1986 i 
times 

cost _ 

higher) and by the autumn total 
public debt had climbed to 93% 
of GDP, compared to 46.9% in 
the UK and 1&5% in France. 

Lax financial administration, 
the costly trade-offs which oil 
the wheels of coalition politics 
and a parliamentary indiscipline 
on spending matters as on so 
much else, means that Italian 
governments have enormous 
problems hitting their spending 
targets. 

In 1988, there were some hopes 
that a comer had been turned 
when the budget deficit was 




Amato, 

foi non itgjoar 
I nte rview an page foun a bandog 

smaller In nominal terms than 
the year before and declined 
from 18.7% to 12.1% of GDP. But 


concern far reforms). 

The Bank is forecasting 


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obviously u 

tainaUe by mid-year and a spe- 
cial L3,500bn revenue-raising 
package was needed in late Au- 
gust to hold the deficit just un- 
der lHtfXMhn. 

This burden, and rite need to 
raise MO.OOObn a month next 
year to fund the deficit and roll 
over existing debt leaves the. 
Bank of Italy with-Iittle room for 
manoeuvre on domestic Interest 
rates: It managed to cut : the dis- 
count rate from 12% to 11.6% af- 
ter the. January devaluation of, 
the lire In a European Monetary 
System re-alignment, but was 
then forced to return to 12% in 
September after a run on the 
currency. - • 

Noticeably, the Bank had not 
by early November felt aide to 
follow several other European 
capitals in cutting key rates. 

A credible 1988 budget which 
both pegged the deficit at cur- 
rent levels and was at least neu- 
tral for inflation would, at Hwt , 
offer the prospect or stable inter- 
est rates. However, the state of 
the lira is a further complication 
to forecasting on this front. 

Currency market operators 
have been disturbed by the dete- 
rioration in the Italian trading 
posttiaa thb year which has seen 
imports, fuelled by strong do- 
mestic demand, rise by around 
7% and exports struggling fix- a 
minimal 0.2% Increase. The ex- 
planation lies In an erosion of 
competitiveness in national cur- 
rency terns because unit labour 
costs have risen faster in Italy 
than fa its mate trading partners 
and also because of exchange 
rate variations. 

According to the Bank at Italy 
wholesale price competitiveness 
fell by around 41% in the first 
hair of the year, largely because 
of appreciatton against the dol- 
lar. The merchandise trade sur- 
ilus with the US fell from 
3,071 bn fa the first half of 1988 
to L2nl66bn in the first six 
months of thb year while the 
deficit with EC countries rose 
from L3,735bn to L5£06bn. 


count thb year of <X1% of GOT 
and a deficit in 1988 of 0.2%. 

This is the rather eloquent 
background to the insistent m 1I« 
from Italian business far an In- 
comes policy. Thanks to gener- 
ous th ree y e a r pay deals with an 
Important element of backdat- 
ing, public sector pay rises have 
averaged about 12% thb year 
and 8% in the private sector. 

The OECD says that thb b 
likely to have increased fadu 
toy's unit labour costs in 1887 by 
more than the 83% rise ngh 
tered tastyetfrv but cost pr essure 
s h ould be less fa 1988 because 
in c re ases in the total wage bill 
wil be largely attributable to. 
wag; indexation. 

Against this backgrounds* 
search continues to reveal that 
Industrial Investment remains 
primarily directed at laboureav- 
ing rather than enlarging capaci- 
ty. te a t , the Italian statistical in- 
stitute says, that companies 
employing more than GOO people 
reduced their payrolls by 33% 
between January and August 
thb year compared to the same 
period in 1986. 

In July, some 237m 

were seeking walk, the 

total since 1958, and represent- 
ing an unemployment rate of 
11.9% compared to 11.2% the 
year before. However, If the fall 
fa the numbers on state subsi- 
dised by-<rff b taken into ac- 
count, the i 


increase runs more 
modestly from 123% to 123%. 

As elsewhere, the unerai 
ment phenomenon reflect a 
rate of jobless among the v 
30 age group and significant fa- 
in the 


numbers of wom- 
en seeking work. The purely Ital- 
ian phenomenon ta that the rate 
b static or even falling fa the 
north (73%) and centre of the 
country (9.7%) but rising fa the 
smith where it now approaches 
20 %. . 

Indeed, title southern problem 
b compounded not just by new 
entrants to the labour market 
but by reductions in employ- 
ment fa industry and agriculture 
which are not being offset by 
new jobs fa the services sector. 

John Wytea 

Romm 


The phenomenon of *11 Sorpasso[ 

The statisticians 
remain coy 


small surplus on the current'ac- 
thb 3 


FOB THE Roman taxidrLver or 
the man on the Milanese tram, 
the sorpasso is an accom; ’ 
fact Italy has displaced 
as tiie fifth- richest country in 
the free world, behind the US, 
Japan, West Germany and 
France. 

Italians who travel abroad and 
foreign visitors to urban Italy 

have no difficulty bettering thb 
to be an economic truth. The 
evidence is plain to see, In the 

designer fashion boutiques, Jew-' 
cilery shops and furniture stores, 
and in toe price of almost every- 
thing from fish fillets to deodor- 
ant 

Italians who do not travel may 
find it harder to swallow. But 
they believe it anyway as a mat- 
te of national pride. 

The news was broadcast fa 
January by Mr. Giovanni Gotta, 
then Treasury Minister and now 
Prime Minister, that Italy would 
overtake Britain during 1987. 

Looking back on the excite- 
ment that followed, some people 
now regard the sorpasso ("over- 
taking’) as merely a touch of 
spring fever, spread by the then 
Craxi government to encourage- 
favourable notices far Jta record 
span of office. . 

But has it really happened? 
The statisticians, on whose fig- 
ures the claim must, ultimately 
rest, are coy. 

Prof. Guido Rey, president of 
the Italian central statistical of- 
flce,btat, and professor of politi- 
cal economy aft Borne university, 
said: “I don't know what the 
present position b. I have always 
refused to have any idea, be- 
cause 1 know ftxxn experience 
how difficult these kinds of In- 
ternational comparison are.” 

Britain’s National Institute for 
Economic and- Social Research 
seems to have irtir*”* 1 the ball 
rolling with a repost last Novem- 
ber that living standards in Italy 
would soon overtake Britain's, 
baaed on projections, of toe past 
ten years uf each country's, 
growth rate. 


- However, the report’s authors 
were not able to base their com- 
parisons on purchasing power 
parities, a measure that irons out 
' the distorting effects of market 
exchange rates. 

fa February, the British Chan- 
cellor told Parliament that the 
UK’s recent growth rate was 
double Italy’s, that its economy 
14 per cent larger and its living 
standards 15 per cent higher, 
based on ISM data. 

The OECD's survey of Italy, 
published fa August this year, 
gave the country a gross domes- 
tic product of S5993bn fa 1986, 
ahead of the UK's *547.4bn. An 
official said that Che gap would 
probably be even wider fa terms 
of ^purchasing-power parities. 

However, the European Com- 
mission's latest index of GDP at 
current prices and purchasing 
power per capita has Britain a 
shade ahead tost year and this, 
forecasting a tie far next year. 
Paradoxically, it also shows Italy 
ahead of toe UK in the first 
years of the decade. 

Statistics, as has often been ob- 
served, can tell Imprecise truths 
or precise lies. Which version 
■ you accept depends on your mo- 
tive for using them. In thb case, 
any verdict must take account of 
the fact that Italy has from thb 
year been using a brand new set 
of figures, which revalued the 
1962 GDP by 15.9 per cent - and 
the years before and after by 
simitar amounts. 

Everyone knows, or claims to 
know, that Italy's “black econo- 
my” is the biggest fa the western 
woridr figures as high as 25 per 
cent of GDP have been bandied 
about. But len than half the re- 
valuation, says teat, b due to 
"capturing” fa figures more of 
the hidden economy. Most of it b 
the result of better counting of 
what was already in view. 

Last month, teat described the 
revaluation as fan act of recov- 
ery of the national statistical sys- 
tem" which it said had been 
eroded by profound traztsfonna- 


tt umber of small and medium- 
sized companies. 

What thb means is that the 
statisticians are at last getting to 
grips with a phenomenon that Is 
obvious to even the most fanu- 
merate visitor: Italian enterprise 
b still vezy much a private, fami- 
ly affair. It thrives in spite of the 
state. 

Britons discomfited by it sor- 
passo may find it Ironical that 
the revaluation was based on the 
recommendations of a commis- 
sion headed by Sir Claus Moser, 
fanner head of the UK’s own 
Central Statistical Office, and ap- 
pointed by the Italian govern- 
ment. 

teat used the findings of two 
national censuses, fa 1981 and 
1982, and special surveys to 
cross-check the normal reports. 
For example, households were 
quizzed about their spending on 
holidays, sport, meals out and 
home improvements. 

They were asked about their 
rent for summer cottages and 
ski-ing chalets, a boom business 
during the Seventies. Every con- 
tribution to the economy, apart 
from that made by criminals, 
was to be examined. 

Many "new" worker* were dis- 
covered: unlicensed undertakers, 
industrial trainees, ilfepl aliens, 
not to mention. the 
of people who still take 
time off from the factory to cul- 
tivate their family small-hold- 
ings at sowfag and reaping time. 

As Prof. Rey explained, it was 
impossible to count all these hid- 
den workers as holding jobs, b- 
tat therefore used another mea- 
sure, the standard unit of labour 
(a recognised yardstick though 
not commonly employed else- 
where) to develop a a picture of 
the actual amount of output. 

As a result the value of agri- 
culture, energy and public ad- 
: raised a i 


ministration was : 


modest 


Continued on page 4 


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Financial Times Tuesday November 17 1987 


ITALIAN ECONOMY 4 


An interview with the Treasury Minister, Giuliano Amato 


A burning concern for reforms 

THE new g e ne ra tion of melt your cabinet while you don't Amato hints at having his own the in stit u tions to deal *yith the 
their forties - a rising female nave powers relating to this re- doubts about , the credibility of nation’s most pressing -economic 
r is still awaited - who have sponsibUity. For some of the a- this first <uaft What he did at problem. Its public deficit? • 
de their mark in Italian poll- sues 1 for which 1 am held liable, the beginning of this month was ‘My answer is yes, but. not- in 


The stock market 


OF THE new generation of mext 
in their forties - a rising female 
star is still awaited - who have 
made their marie in Italian poli- 
tics over the last five years, the 
emergence of Giuliano Amato,. 
Che Treasury Minister, is proba- 
bly the most interesting. 

While neither his intellectual 
qualities nor his prodigious appe- 
tite for work can be disputed, he 
owes his present eminence to 
one man, Bettino Craxi, the So- 
.dalist party leader. Although 
Amato had previously been an 
astringent cntic of ms style of 
leadership, Craxi installed him 
as his undersecretary as soon as 
he became Prime Minister in 
1983. 

In the succeeding four years, 
the 48-year-old Tuscan who, like 
Craxi is partly of Sicilian parent- 
age, became arguably the second 
most effective member of the 
government after Craxi himself. 
As a counsellor, as an organiser, 
as a mediator between ministers 
and as a drafter of legislation, 
Amato emerged as a highly 
skilled ‘man of government” 
who in the forseeable future 
looks likely to occupy top posi- 
tions for as long as the Socialist* 
are part of the executive: 

He is slight in stature with a 
quick smile and an open, pene- 
trating gaze. His answers to 
questions, given in English 
honed as an academic in the US, 
sometimes take refuge In a feath- 
er-light use of irony. 

Many mouths before taking 
over at the Treasury at the end 
of July, Amato sakf in a maga- 
zine interview that he would 
view any prospect of going to 
the Treasury as “terrifying." Was 
it moving to be so In practice, I 
asked ? 

‘It is terrifying In some ways 
to be the only responsible minis- 
ter of overall fiscal policy of 


S ur cabinet while you don t 
re powers relating to this re- 
sponsibility. For some of the is- 
sues 1 for which 1 am held liable, 
I must plead ‘not guilty’ because 
we have three ministers having 
to do with fiscal policy - minis- 
ters of the Treasury, Budget and 
Finance. I accept the system, 
even though it is not rational at 
alL" 

Very few politicians other than 
Amato would have given such an 
answer because not many share 
his burning concern to reform 
the Italian system of govern- 
ment. As a professor of law and 
political science at Rome Univer- 
sity until his election in 1983, he 
had frequently written of the 
need for political change and 
part of his purpose in govern- 
ment Is to achieve it 
His current discomforts are 
borne erf having to impose an 
emergency credit squeeze at the 
end of August ana then cajole 
his colleagues to revise the 1988 
budget proposal in November, a 
tittle more than a month after 
the original was adopted. 

The purpose of the first draft 
was to cut the underlying budget 
deficit in 1988 from a record 
Ll28,OOObn to an actual 
L,109,G00bn. It sought to do so by 
raising around L10.000 in new 
taxation and L8,000bn in econo- 
mies. From the first, there were 
strong doubts among many ana- 
lysts about the overall strategy. 

The Bank of Italy feared that 
increases in VAT rates and other 


er the savings were all real ones 
and, such as they were, whether 
Amato and his oolleagues could 
preserve them during a parlia- 
mentary process whim gives ex- 
cessive scope for amendment 
and special interest lobbying. 


Amato hints at having his own 
doubts about the credibility of 
this first draft. What he did at 
the beginning of this month was 
to sieze on the turbulence of in- 
ternational equity mid fi nanwal 
markets as good reason far re- 
quiring greater austerity. 

As a result of the revision ex- 
ercise, the deficit target has been 
brought down to around 
L10&,Q0Qbn. Nonetheless, Amato 
denies that the government got 
its strategy wrong the first time 

around. 

“We have to take account of 
tiie fact that changes in the sce- 
nario since September mean that 
the prospects of a growth in out- 
put and world trade are not as 
strong &b they were.'he says. 

“The revised budget has to en- 
able us to safeguard stable 
growth in our own economy, 
even in the face' of recessionary 
pressures, which could come 
from abroad, and against the 
background of great instability 
in currency and financial mar- 
kets." 

But as many of his predeces- 
sors have discovered, ft is one 
tiling to table a budget and the 
accompanying legislation aiming 
at economies, and quite another 
and quite another to secure par- 
liamentary backing. 

His problem, as he stressed, is 
that current laws require that re- 
forms of the health and pensions 
systems which can produce real 
savings have to be presented as 
legislation separate from the 
budget. Amato appears dubious 
“that these procedures, with the 
two houses of parliament dou- 
bling up on — other, are caper 
We of introducing the necessary 
reforms quickly enough. From 
my point of view, time is mon- 
ey." 

Is part of his purpose, then, to 
demonstrate the inadequacy of 


Differing views on ‘II Sorpasso’ 


Coottnoed from page 2 
0.7 per cent; second homes added 
another 1 per cent; ‘hidden* 
workers accounted for another 
4.6 per cent of the GDP increase 
and better measurement of visi- 
ble output 2 per cent Small busi- 
nesses were found to be underde- 
claring by 2L6 per cent, while the 
refinement of statistics on small 
firms' accounts and on leisure 
and home improvement spend- 
ing added a full 5 per cent. 

How much will this height- 
ened a w areness of what is hap- 
pening In the Italian economy 
influence policy. Prat Key says 
the most likely consequence win 
be to reinforce the politicians’ 
new-found enthusiasm for shift- 


ing the fiscal burden from direct 
to Indirect taxes. 

"Italian politicians don't much 
like to take account of statistics 
when making their decisions. 
They work more on discussion, 
anticipation and (Hi people’s ex- 
pectations. We don’t traditional- 
ly have a culture of quantitative 
reasoning. We argue more like 
lawyers. 

Nor is there much sign that 
Italy - when and if the aorpasso 
becomes incontrovertible met - 
will be allowed to oust Britain 
from the inner dub of five, in- 
dustrial nations who try to co-or- 
dinate macroeconomic policy an 
the world’s behalf. Britain daim* 


its Group of Five membership on 
the strength of sterling's role In 
the world economy, not merely 
the size of its own GDP. 

Nevertheless# may be harder 
from now on for the G5 to Justify 
its caucus meeting Already, in- 
deed, it Is the wider Group of 
Seven including Italy and Cana- 
da that puts out the communi- 
ques. 

For an beta few sensitive Ital- 
ian poCttdana, It hardly, matters. 
What matters to the Italians is 
that they can now brandish hard 
evidence of their post-war eco- 
nomic success. The rest of us had 
better recognise fit. 

Christian 


ruj tuwnu u ju | uue. an re-m 

such a way as fco refuse to>ocept 
my responsibilities and tio say 
this was my problem and now it 
Is yours." 

He will then, fight for his pro- 
posals -“I am perfectly aware 
that if my deficit becomes 
L120j000bn, then I am dead," he 
sayB laconically. 

The public deficit is a “siV-k- 
ness” which he says certainly re- 
stricts his freedom of manoeuvre 
to stimulate the economy, if nec- 
essary, by reducing interest 
rates. He acknowledges the need? 
for a new medium-team plan for' 
the deficit. The one operated by 
his predecessor, the current 
Christian. Democratic prime min- 
ister, Mr Giovanni Goria, has be- 
come worthless since it was 
predicated on a L90,000bn deficit 
next year - ‘I myself feel the 
necessity of knowing where 1 go 
from here—" he says. 

The five-party coalition of 
which he is Deputy Prime Minis- 
ter, is dearly not under -pinned 
by the same strength of commit- 
ment which bound together the 
two previous Craxi governments. 
WIH this be a handicap in push- 
ing the budget through parlia- 
ment? . 

"Yes, the members of the Craxi 
governments felt links of loyalty 
much more than they do now. 
As you know not a single party 
leader is in this government. I 
have often thought there, could 
be advantages in that, but not at 
this time." 

For the moment, he cbrftww the 
Italian economy is in reasonable 
health and no more liable to suf- 
fer worse consequences from a 
recession th»n any other - ‘I 
would not bet on any western 
economy more than the Italian. 
It has succeeded in past years 
when success looked unlikely." 

Amato is the fust Socialist 
Treasury Minister in any post- 
war Italian government and 
many observer s are still wonder- 
inj^wfaat the policy implications 

“Craxi has g i ven us pragma- 
tism and I am very pragmatic. I 
have shown 1 was ready tp in- 
crease interest rates if necessary. 
But I am not ready to penalise as 
much as I can the Italian econo- 
my and Italian development be- 
cause of my financial problems. 
There is a bias towards develop- 
ment and employment as my 
main goals," be saya. - 


WHEN WALL Street tnwhiff and 
Milan set off after it, some Ital- 
ian stockbrokers proudly ob- 
served that their exchange was 


Time of uncertainty 
for the Milan Bourse 


at last paying attention to events 
In the big world outside. It was, 
they said, another sign that the 
Borsa was - • - 



programme is intended to bring 
order, and technical sophistica- 
tion to a market which has 
grown very rapidly but which 
retains many of the structural 
vices of its casino past 

la the last five years, capitalis- 
ation and turnover of the MTb>n 
exchange have Increased four or 
fivefold. Mutual funds, created 
three yean ago by law, have ad- 
ded some SSObn of savers' money 
to the board. The exchange has 
seen a flood of new issues as 
industry restructured and went 
to the market to wipe off its 
[bank debt. 

Foreigners came hunting for 
bargains, and although many 
I went away again after the boom, 
they left behind a market repre- 
senting some 19 per cent of the 
value of all European bo u rses. 
According to one broker who 
specialises in the area an hetmif 
of Sigeco, the broking arm of 
IMI, foreign investors still fed 
bound to keep some part of their 
portfolio in Italy. He also says 
they enjoy the political stability: 
"What looks like a change of gov- 
ernment here is really only a 
Cabinet reshuffle." 

For all its growth, the ex- 
change is still smalL There are 



Above: the floor of Ibo Mae 
Stock Exchange. Tbe market 
has grown a lg n fflcanU j hi re- 
cent yews, but It *» feces a 
n e m bo r of problem s such as 


Values in thousand bflUon 

Capitalisation 

200 


tha concentration of most tborfty Iso remains c on cerned 
trading la fewer than 40 that around 60 par cent of all 
s tisr sa end a struggle for doat- share transactions take place 
Ing rights between banks and away from tha Stock Ex- 
stock broken. The Consob change, 
stock market regulatory an- 


How Milan's Exchange grew 


Turnover Assets of Mutual funds New Issues 
80 . 80 (Italian) 16 


John Wytas 



Bolognafiere '88 

Bologna international specialised exhibitions 
reach from Italy throughout the world 


5/8 February 

Expo vest 

A fashion appointment 

19/22 February 

ArU* Freni 88 

f n terr.aiio rial fair of 
contemporary art 

4/7 March 

M team Modaca Isa turn 

International foot wear 
exhibition 


7/10 April 

Eiera del liltro 
per ragazzi 

Children’s book fair 


22-25 September 

Expo vest 

1 fashion appointment 


22. 25 April 

Cosnioprof 

[■ixhihtt ion of perfumery and 
cosmetics 


4. 9 October 

Cersaie 

International exhibition of 
ceramics for the building 
industry ant! bathroom 
furnishings 


16/20 March 

Saiedue 

Spring building expo 


1 [.'14 May 

Si mac 

Ini e rna i ion id e. v/r ib i io > / of 
machines for the footwear, 
ieathergoods and tanning 
industries 


12/14 May 

Lineapelle 

Italian preselection of 
lealhergo < ids fashion 


26/30 October 

Saie 

l ntemaiioihil exhibition of 
building industrialization 

9 13 November 

Eima 

International agricultural 
machinery manufacturers 
exhibition 


9/12 Sep; ember 

\ fic.un Modaealzafura 

h ; t ern a fion a! foot v. ■ ea r 


3/1 I December 

Motor Show 

International exhibition <>• 


only 200 or so quoted companies 
and only a dozen are actively 
traded: No foreign shares are ' 
-listed. Most of the big companies 
are majority-owned or controlled 
by individuals and Awiffii ex- 
traordinarily reluctant to float 
their enterprises off. The only 
blue chip that could be called a 
public company in the English 
sense is Generali, the interna- 
tional insurance company based 
in Trieste, in which no single 
holding is bigger than 10 per 
cent. 

The various holdings of the 
Agnelli family, for example, 
have a combined capitalisation 
equal to nearly 23 per cent of tbe 
entire stock market. The state 
controls a third of the listed 
companies. 

“Until five years ago no-one 
would have dreamed of going 
public because the stock ex- 
change was a joke", says Mr. Pa- 
olo Azzoni, a stockbroker with 
Albertini partnership. ‘On the 
political level we are a very ad- 
vanced democracy. But on the 
economic side we are a long way 
from it." 

The result Is that investors on 
the Milan bourse are being asked# 
to accept far modi risk in ex- 
change lor too little control.. Far 
instance, many small Investors 
were persuaded to take op non- 
voting "saver" shares, which en- 
abled companies to raise cash 
but diluted the stock without re- 
ally diluting ownership Ignored 


Of which 
equities 


T4 

12 

TO 

8 


_o.JM 0 EM 

sJcg^l 86 86 S 7 1983 84 85 86 87 19838485 86 87 


Bank of Italy. The liquidity prob- 
lem may be overcome -as the new 
merchant banks set about bring- 
ing to the market some of the 
1,800 medium-sized companies 
that research by the state credit 
institute IMI shows are ready to' 
go public. 

The chief functional problem 
of the MQan exchange - settle- 
ment delays - that helped drive 
foreign investors away is gradu- 
ally being overcome According 
tolfr. Att&io Ventura, vfoe-prarf- 
dent of the Exchange, the vol- 
ume of unprocessed deals has 
been cut from Ll.OOObn nine 
months ago to LSOObn today. 
Over 60 per cent of the shares m 
circulation eligible for inclusion 
In the central register, Mhnto TV- 
tali, are now in the system, he 
said. 


ties market operating on a con- 
tlnous auction basis, gilts an a 
dealer basis and block transac- 
tions being h a n dled directly by 
brokers. 

Established brokers, fearful 
that .the new securities houses 
would be dominated by the 
banks, argue that the notion of 
continous auction is misplaced: 
it would become a dealer market 
of the kind that has proved so 
volatile In London and New 
York. They say that a dealer sys- 
tem is only supportable in a big. 


S udd market 
ill players 


populated by pow- 
erful players and restrained by 
strong rules for the protection of 
the investor all things that Italy 
still lacks. 

Consob officials realise that 
their proposals, although de- 
signed as a compromise, are toi- 

nrtntilni- nrii-h th-. . . 


quality - including insider trad- 
ing - and we have technical 
problems. We feel our market 
structure is very weak and if we 
don’t change it by 1992 (when 
all EEC controls on capital move- 
ments are due to be abolished) 
we will find ourselves taken over 
by foreign institutions. 

"But. 1 don’t think thee is a 
very strong feeling here that we 
stand to lose anything'. 

More important than stock 
market reform, many would ar- 
gue, is the modernisation of Ita- 
ly’s feudal business customs: the 
priorities are to enact an anti- 
trust law, such as that being 
drafted by Senator Guido Rossi, 
a former Consob chairman, to re- 
form takeover procedures, to 
outlaw insider trading. Only 
then would it be worth, worrying 



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Financial Times Tuesday November 27 1987 


C ITALIAN ECONOMY 5 ) 


The Bank of Italy 


Reputation for independence 


ITALIAN POLITICAL ■ parties =■• The 
have such a rampant appetite for 
;thems»di 


which the 


parcelling out .'among themselves . 
the top jobs in state companies 
and institutions tbat.it remains a 
source of some- amazement to 
discover one'Jcey -body that has 
teen left untouched. The Bank : 
of Italy's exclusion' from what Is 
known as the s oteo&ommo is hot- 
easily. explained, but if- hasa'lot . 
to do with the quality of toe men 
who have governed' it since the - 
ws): and thg Bank's own internal 
procedures and culture. '~ 

Men such as. Luigi Einaudi 
. (1944-48) who went , on to -be- 
come President of Italy* and Gui- 
do Carli {I960 -1975}. combined a 
keen}' awareness of the need for a 
politically - indie pendent cen tra{ 
bank with the ability to ensure 
-that Its staff observed the neces- 
sary' disciplines. “We have- al- ' 
ways tended to .reward technical 
excellence, rather 'than political 
percep tions,* . says one senior of- . 


reputation 
Bank has built, up over the years 
for political independence and 
Intellectual rigour Is the -essential 
underpinning for the role of pub- 
lic gadfly . which has to be as- 
sumed by its governor. On at 
least two or three set-piece occa- 
sions each, year, he must point 
up the errors said failings in eco- 
nomic pqUcfes which frequently 
result from the rapid turnover of 
governments and the sometimes 
profligate Hading between coali- 
tion parties- ' 

. .The tradition of appointing 

pernors, .and sometimes their 
puties. from outside the Bank 
was broken with. the nomination 
of . Paolo Baffiin 1 975-, His suc- 
cessor, the present governor Car- 
lo .AregHo Ciampi,.is also a do- 
mestic product and since the 
outgoing governor's recommen- 
dation of a successor tends to be 
the determining factor, few be- 
lieve that outsiders will again . HU 
the . top' slot In .the forseeable fu- 


Bank’s top men 


THUS CURRENT, dtroctorinm 
which ruts the Bank of Ita- 
ly contain* * wide mix of 
domestic International 
experience. Governor Ciam-. 
pi entered the Bank in 1946 
after three years service in 
the ltallan array. Now 67, he 
was appointed in 1979 after 
a career which had taken 
hbqt through v ur io ua depart- 
ments inehidfffig a spell as 
head of research, a frequent 
springboard to the top Ln 
the bank.. ' • . 

Born in Livorno, a gradu- 
ate of the University of 
Pisa with* diploma from its 
highly prestigious Scnoia 
Normals Snperiore, Gover- 
nor Clampl is often non el- 
liptical in' his attempts to 
lectnre governments .than 
some of his predecessors, 
bat within the Bank he is 
highly respected for hie 
toughness and political in- 


His deputy, Lamberto Di- 
al, 66, had spent most of his 
career in the US before be- 
coming director general in 
October 1979. A ‘‘suuuna 
com lands* graduate at the 
University of Florence, he 
completed .post-graduate 
studies, at the Universities 
of Mk-Mgmi and Minnesota 
and collected a string of 
scholarships; including a 
Fulbrlght and a, Ford Fotnr 


dstion Research fellowship. 

. He* was an executive dl- 
. rector of the IMF between 
1976 and 1980. and Ids many 
international responsibili- 
ties btdnde the vlce-preal- 
dency of the EC's monetary 
committee and being Italy’s 
alternate governor at the 
IMF and the In ter- American 
development Bank.- 

Antonio Fazio, SI, was 
made deputy director gener- 
. al in 1982, having been the 
Bank’s central manager for 
economic research and, be- 
fore that, head of research 
department for. six years. 
Another '"samma cum 
laude" graduate (University 
of Borne), he is a specialist 
in monetary policies and a 
prolific author of articles 
on this and other themes. 

Tommasofadoa-Schioppa,. 
47, is the newest recruit to 
the , directorium, having ar- 
rived in June 1984 after a 
year as director foreconom- 
ie research. In 'tie fonr 
years from 1979, he was the 
European ComndssUm’s di- 
rector-general for economic 
affairs. Also, a fsnmma enm 
laude" - .ha economics from 
Bfilan'a prestigious Bocconi 
University - his range In- 
cludes econometrics, mone- 
tary theory and the h *" lri "g 
system. 

John Wytes 


ture. . 

In contrast to the 47 govern-' 
merits which have- swung tn and 
out of office since the war, toe 
Bank has had a mere five gover- 
nors. They are appointed for life 
and are, therefore, -free from the 
dangers of polIticaL retribution. 

Any Italian government's rule 
in determining toe too manage- 
ment is largely formal. It -is re- 
quired- to ratify the appoint- 
ments of the Governor, his 
deputy who is known as the di- 
rector general, and of the depu- 
ty's two deputies. These four * 
the directorium - are . all appoint- 
ed by the Bank's Gonsiglio supe- 
riore which Is made up of 13 
prominent and independent peo- 
ple drawn from 13 Italian, towns 
and cities. Since the Bank, is a 
public company, its shareholders 
- financial institutions and large . 
savings banks - appoint the con- 
sigUo superiors. 

ln practice, these formal struc- 
tures have served well to insu- 
late toe bank, from political in-, 
terference. But clearly politics 
and -relations with the govern- 


inter-ministerial committee for 
credit and savins on all -policy 
matters for which the Governor 
alone is nominally responsible. 

In toe absence of a board of 
directors with policy responsibil- 
ities, the Governor extras a re- 
markable independence In com- 
parison with, say, the Governor: 
-of the West .German Bundes- 
bank.- In matters of. banking su- 
pervision and regulation, mone- 
tary policy' and- currency 
■management Governor Claxnpi 
could, if he wished, exercise 
neardictatorial powers of deci- 
sion-making. 

In practice, most decisions are 
taking collegially by the directo- 
rium after an extraordinarily 
flexible and informal fashion. 
The four men are served by a 
J secretariat and three of toem.can 
sign all official documents, and 
communications with toe same 
authority as the governor. 

The tour almost never hold 
formal meetings. Their offices sit 
side-by-side in the elegant 
southern wing of the Bank's pair 
azzo oh Rome's Via Nazionale 
and- there is a regular flitting 
from one suite to another for 
Consultations. Although each of 
toe four has separate spheres of 
responsibility, ml documents re- 
quiring a decision are submitted 
In quadruplicate and none is 
cleared until the three managers 
hot directly involved have had 
the opportunity to comment or 
intervene. 



Governor damp): bo has worked hard to protect the central 
bank’s au tonom y and baa complained for yean about Italy's 
public sector deficit. 


Since the governor frequently 
has determining influence ova: 
the choice of his deputy and toe 
directorium as a whole effective- 
ly selects a new deputy director 
general, -there is a danger, ac- 
knowledged within, the Bank, of 
in-breeding. However, intellectu- 
al roerithas long been the prime 
consideration in toe Bank’s over- 
all recruitment policy and it is 
said that this ensures a diversity 
of background and experience 
within the directorium. 

It also protects the immense 
respect the bank enjoys within 
Italy and abroad for toe quality 
of its people and work. Just as 
overt political connections are 
discouraged among its manageri- 
al staff; so also is dogmatic com- 
mitment to any particular School 
of economic theory. Its leading 
managers, from the governor 


downwards, have in recent years 
embraced monetary targets, a 
managed exchange rate target 
(through membership of the Eu- 
ropean Monteary System) and 
nominal gross domestic product 
forecasting, but always pragmat- 
ically ana mostly from intellec- 
tual conviction. 

Within the Bank, it is freely 
acknowledged that mistakes are 
sometimes made of judgement 
and policy, although the present 
generation of managers reach 
back to the 1960s ana 1970s for 
examples. They believe, for ex- 
ample, that the strong efforts 
now being made to encourage 
banking deregulation and en- 
hanced competition are a neces- 
sary compensation for a regretta- 
bly late start. 

John Wytes 


Bocconi University 

Training Italy’s 
managers 


THE ENTREPRENEURIAL 
Spirit of Milan's Bocconi Uni- 
versity . a highly competitive 
and elite private training 
ground that aspires to be It* 
ly’s version of the Harvard 
Business School, in apparent 
from top to bottom. 

At the top there is 66-year- 
old Professor Luigi Guattri, 
the "Magnificent Rector" of 
the university, a short and 
grey-haired ■ bulldog of a 
who as a former marketing in- 
structor certainly knows how 
to market himself: he not on- 
ly runs die university, with 
its 10,000 students, 838 pro- 
fessors, seven institutes 
20 specialist research centres, 
but finds the time to have ac- 
cepted directorships on the 
boards of no fewer 40 

Po mpinl u . 

At the bottom are the stu- 
dents, all of them paying tu- 
ition which is extremely ex- 
pensive compared to Italian 
state universities, all of «*— ■ 
having sat a difficult en- 
trance exam that rejects two 
out of every three applicants. 

At the rather drab Bocconi 
campus, the atmosphere is se- 
rious and austere. Students 
dress ln the jacket and grey 
flannel garb of Italian busi- 
ness executives. They are an 
earnest and hard-nosed lot, 
almost to a man (or woman), 
rushing around classes with a 
salmon-coloured copy of D 
Sole 24 Oro^the Italian Imita- 
tion of the Financial Times), 
tucked under an arm. And 
they take themselves, and 
Bocconi, very seriously. 
Bocconi, by general consen- 
sus, is Italy’s best business 
School and what la taught is 
more than just economic the- 
ory- Bocconi teaches the prof- 
it motive, ambitions the 
almoat-relglous value of man- 
agement capability. 

Bocconi students see them- 
selves as being n "cut above," 
and even Professor Gnattrl 
admits that this "presump- 
tion" may be getting out of 
hand - "They feel that upon 
graduating they have auto- 
matically the right to a well- 
paid career. And given the 
buoyant state of Italian in- 
dustry and finance In recent 
years. It is true that Bocconi 
graduates do not suffer from 
unemployment.” 

Bocconi graduates Justify 

the intense competition at 
the university, where they 



V^v-, ' 



Prof .Luigi Guattrfc dfcectofshlps with 40 companies. 


must be fluent in two foreign 
languages, sit for eight exams 
a year and contend with so 
much stress that 60 per cent 
of those enrolled do not make 
it through to graduation. Pro- 
fessor Guattri says the Boc- 
coni graduate "is happy to 
have gone through a tough 
time and to have learned a 
method of thinking and work- 
ing that is serious and highly 
disciplined." 

The students, says the pro- 
fessor, (who is also the au- 
thor of dosens of business 
books), “are trained to work 
hard and face problems with 
methodology.” And the com- 
panies that hire Bocconi grad- 
uates, and these include ev- 
ery one of Italy's most 
famous Industrial and bank- 
ing names, "tend to like the 
iwmflt mentality of Bocconi.” 
according to Prof Guattri. 

The courses at Bocconi in- 
clude a four-year undergradu- 
ate economies programme 
with 82 a four- 

year p r ogramme in business 
administration (also 82 ex- 
ams) and a five- year pro- 
gramme in economics and so- 
cial sciences (with 27 exams). 

There are also graduate 
courses in statistical and op- 
erational research, labour 
and industrial economics, in- 
ternational economics and 
monetary economics. The 
best-known faculty member 


at Bocconi is Professor Mario 
Monti, who ranks as one of 
Italy's leading economists. 

Prof. Mo d, an amiable 44- 
year-old who has participated 
in various quasi governmen- 
tal studies of the sys- 

tem, is a prolific writer of 
economic commentaries for 
the Corriere della Sera, a tire- 
less organiser of conferences 
that bring to Bocconi the na- 
tion’s top central bankers, in- 
dustrialists and financiers, 
and of course a man with a 
hand In the real world of com- 
merce and banking himself in 
short, the quintessential Boc- 
coniano. 

Prof -Monti Is chief econom- 
ic adviser to the Milan-based 
Bancs Commerclale Italians 
(Bd)» Italy’s second biggest 
commercial bank, and be re- 
cently was elected to the 
bank's executive committee 
as weEL And bis utterances on 
national monetary policy 
tend to command the atten- 
tion of authorities and bank- 
ers up and down the Italian 
peninsular. 

As for Prof Guattri, he man- 
ages to find time away from 
Bocconi to do work with Pirel- 
li, Montedison, Gemina, Gre- 
dito Varesino, Honeywell, 
plus another three dozen com- 
panies. 

"He Is very, very busy," con- 
fides an ride. 

Alan Friedman 



While tte dipper toips were establish- 
ing speed records for bringing tea from 
the East to the-TOo. HongkongBank 
was establishing a unique reputation in 
trade faance. 

Formed over a century ago, we were one 
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# 


VI* 


Hnwci?! Times Tuesday November \7 1987 


( ITAUAN ECONOMY 6 ) 


Retail banking: shortcomings in service and efficiency 

Wry smiles from customers 


’BANCA COMMERCIALE is an 
awful bank. It seems impossible 
to get decent service,’ remarked 
a disgruntled foreign customer. 
But her unhappy experiences at 
the hands of one of Italy's big- 
gest and best-known banks are 
not unusual. A random poll at 
B&nca Commercial* [tali ana’s 
branches in the capital might re- 
veal a substantial proportion of 
customers who are not satisfied 
with the services for which they 
are paying. 

Customers would probably 
smile wryly if Banca Commer- 
cial* Italians were to borrow the 
advertising theme used by a ma- 
jor British bank, and publicise 
itself as “the listening bank.* The 
unhelpful Indifference of mene- 
freghismo (don't give a damn) 
often appears to be the style of 
staff in the capital's branches. 
The costs of errors caused by 
carelessness are charged, either 
directly or indirectly, to the cus- 
tomer. 

"Tulle le banche sono ladrg l* 
remarked a customer. (All banks 
are thieves.) Indeed, Banca Com- 
merciaie Italians is not alone in 
causing irritation on the custom- 
er's side of the counter. Displays 
of annoyance, sometimes rising 
to anger, are commonplace at 
the Rome branches of many of 
Italy's large banks, as customers 
struggle to be served. 

At peak times of the month, as 
customers throng the banks and 
create scenes of chaos and confu- 
sion, the branches seem to re- 
semble the visions of hell 
painted by Renaissance artists. 
Certainly Latin aversion to 
queues does nothing to help the 
customer, but banks coula im- 

E rove matters by organising 
ranch space and service meth- 
ods rationally. 

If the service is so bad, why 
not change branches or even 
bank? Unfortunately, switching 
branches is no guarantee of get- 
ting something better. A senior 
officer of one of the savings 
banks' central institutions has 
twice changed branches at one 
of the country's biggest sa' ' 
banks. They are equally 
he complains. 

Indeed, behind the apparent 
wealth of choice offered by 1,100 
different Italian credit institu- 
tions, real consumer choice is 
quite modest The truly national 
banks can be counted on the fin- 
gers of one hand, so this tends to 
reduce the options. 

Mr Piero Barucci was elected 
to head the Italian banking asso- 
ciation ABI in June. He therefore 
stands in the frontline of those 
charged with defending the sys- 
tem. He Is also chairman of the 
world’s oldest bank, the Monte 
del Paschi di Siena, and so has 


first-hand experience of being at 

the. sharp end. There Is not 'a 
country (p the world where peo- 
ple do not complain about 
banks,’ says Mr Barucci. 

He admits that Italian banks 
probahly employ too many peo- 
ple. Many customers would agree 
with ABI's chairman- While they 
queue for service, they have the 
opportunity of counting the regi- 
ments of clerks in the branches' 
open plan back offices, which, 
are now standard in Italy. “With 
current levels of employment, 
banks can widen their services,’ 
notes Mr Barucci However, most 
customers would be grateful for 
improvements in dne efficiency 
of banks' present operations. 

Mr Barucci refutes a cc us a t i ons 
that Italian bank staff lack pro- 
fessionalism. Many senior bank- 
ers are, however, prepared to ad- 
mit that personnel poses the 
biggest problem to bank manage- 
ment In Italy. They recognise 
that there are weaknesses at all 
levels, from the highest ranks of 
executives down to the lowest 
grades of bank clerk. The ab- 
sence of real competition in the 
banking system and the brakes 
imposed by oppressive bureau- 
cratic procedures have acted as a 
depressant on managerial initia- 
tive, Bank clerks are not service- 
oriented because they have tak- 
en the example of their superi- 
ors. 

But staffing appears to pose an 
intractable problem. The signifi- 
cant reduction of income differ- 
entials over the past 10 years has 
eroded the attractiveness of bank 
employment. Bank staff com- 
plain about having lost much 
ground relative to other catego- 
ries. They have suffered a slip- 
page in status. 

At a time when top 
jnent is increasingly aware of the 


manage- inmrov 
re of the Italia 


need to improve levelsof service, 
the conditions to do so are not 
favourable. The brightest school 
and university leavers, who in 
earlier times were drawn to ca- 
reers in banking, now opt for 
other jobs. Long-standing em- 
ployees, who may have joined 
banks because these offered high 
salaries, status and stability, now 
find’ that these elements are 
missing. They are being subject 
to intensive retraining and asked 
to modify radically their ways of 
thinking and working- Thus, the 
dissatisfaction of the customer is 
matched by discontent on the 
other side of the counter. 

In answer to criticisms of the 
efficiency of the Italian banking 
system, Mr Barucci says that the 
yardstick for comparison should 
be the country's sendee sector as 
a whole, rather than banking 
systems in other countries. "The 
real problem in Italy is -the need 


nency o 

services,” he claims. Mr Barucd 
attributes the banks' inefficiency 
to the burden of having to work 
with an Inadequate postal ser- 
vice, a poor telecommunications 
network and a creaking system 
for collecting public sector reve- 
nues. 

Mr Barucci points to the bu- 
reaucratic procedures which 
weigh heavily on banking 
operations. The collection of 
taxes and social security contri- 
butions makes heavy demands 
on banks' resources. According 
to ABI’s chairman, although 
members are paid for their ser- 
vices as revenue collectors for 
the state. It is a task they would 
willingly forgo. Until recently 
banks generated an enormous 
volume of paper in order to satis- 
fy exchange control regulations. 
As part of anti-Mafia controls, 
when customers wish to deposit 
cash amounts exceeding LSm, 
banks are required to record the 
numbers of every L100.000 note. 

Staffing appears to 
pose an Intractable 
problem In Italian 
banks. 


Earlier this year the Bank of 
Italy published a “white book” 
which admitted that Italy’s pay- 
ment systems lag a considerable 
way behind those of other indus- 
trialised countries. In the docu- 
ment experts at the central bank 
evaluated the current state of 
Italian payment systems, identi- 
fied the direction to follow and 
the action which needed to be 
undertaken in order to achieve 

entente. 

Italians prefer dealing in hard 
cash. The analysis showed that 
money continues to play a very 
significant role. While the thriv- 
ing "black economy’ partly ex- 
plains the attachment to cash, 
the Bank of Italy considers that 
the main reasons are to be found 
in the unsatisfactory nature of 
other means of payment, and in 
structural and institution el as- 
pects of the Italian economy. 

The statistics given In the 
"white book' provide 'some am- 
munition for Mr Barucci. The 
payment methods used by the 
Italian state bureaucratic ma- 
chine have clearly been back- 
ward, Nearly 79 per cent of pay- 
ments were made in cash in 
1986, compared with only 10.7 
per cent through transfers to 
bank accounts. But the Bank of 


Italy notes an improvement. In 
1979 less than 7 per oent of pay- 
ments by the state sector were 
made that way. 


Pensioners' have , had to wait 
until this year for the chance of 
having their pensions credited 
directly to .their bank accounts. 
But, given that elderly people 
are generally less amenable to 
change, significant shifts in the 

channels for pension payment 
cannot be expected in the near 
future. 

A major problem is the scepti- 
cism with which Italians view 
the banks. Expensive, opaque in 
their conditions, inefficient and 
offering poor service, Italy's re? 
tail banks lack consumer appeal 
“The low use of cheques, in par- 
ticular, can be attributed to the 
quality and cost of the service 
given by banks,” the Bank of Ita- 
ly's 'white book” comments criti- 
cally. Analysts at the central 
bank note that the value dating 
conditions applied by banks, the 
time neeped. for cheque 
operations and -the quality and 
completeness of information 
which the banks give customers 
makes the use of cheques in Italy 
less attractive than in other 
countries. ' 

It is not surprising that there is 
considerable reluctance to accept 
cheques, given the time needed 
for them to be credited. "Times 
for payment are significantly 
above those in other countries 
when operations involve bank 
drafts and cheques,” concludes 
the Bank of Italy’s document It 
gives three reasons for this; the 
widespread recourse to the trans- 
fer of paper documentation, tile 
lack of set time .conditions re- 
garding cheque operations and 
the scarce or inefficient use of 
systems for electronic message 
transmission. 

‘Banks must not lose their cen- 
tral position in -the payments 
system. We have established an 
internal organisation to promote 
developments, and recognise the 
need to posh ahead at the speed 
of the moat progressive banks, K 
says Mr Barucd. He believes that 
ABI’s strategy for payments 
systems coincides with foe-lines 
laid down by the central bank. 

However, Mr Barycci is not op- 
timistic that the much-needed 
bank mergers will occur. The 
large number of banks is recog- 
nised as a factor which hampers 
progress in Italian retail bank- 
But Mr Barucci foresees only 
per cent drop iq numbers by 
the end of the century. 

Italy's retail banking system, 
might, therefore, still be offering 
the consumer a choice of more 
than 1,000 banks in the year 
2000. Customers must be hoping 
that, notwithstanding these tiny 
steps on mergers, there will be 
strides in service and efficiency. 

. pavtdUup 


if, 


«Eni 


THE STRUCTURE OF THE GROUP 


Ente Nazionale Idnocarburi is a pu- 
blic-sector holding company with 
controlling interest in 12 sector- 
head companies that operate in 
different business areas: energy, 
chemicals, engineering, services 
and heavy machine manufactur- 
ing, texile machinery and mining 
and metallurgy. A total of 300 
companies (172 in Italy and 132 
abroad} report to the sector- 
head companies, and are conso- 
lidated in the ENI Group financial 
statements. The corporate natu- 


re of all the companies control- 
led by ENI and the regulations 
that govern them are the same as 
those envisaged for joint-stock 
companies. 

This organization of the ENI Group 
is keyed to important objectives: 
enhancement of the Group's in- 
ternational dimension, planning 
business policy, and performance 
control. ENI provides the Group's 
operating companies with gene- 
ral guidelines and assistance in 
the coordination, planning and 


control of business and financial 
management personnel policy 
and external relations. The ope- 
rating companies maintain their 
own identity and operate inde- 
pendently. 

Organizational relations between 
ENI and Group companies are 
marked by the utmost flexibility 
so that strategy and goals can ad- 
just immediately to economic and 
industrial developments in the va- 
rious areas and markets in which 
the companies do business. • 







Oil and natural qua axptorWion and produc- 
tion; crude oil supply: nudaarfufll cycla.-re- 
newabta envgy (gaothermst. photovoltaic): 
activities in the non famous mtnaralssactor. 


Production, processing and trading of non 
ferrous metals from concentrates, scraps 
and civil end industrial wastes: quarriyng 
and proemring of marbles: production of 
sulphuric add and barium derivatives. Pro- 
duction and processing of abrasive and ad- 
vanced ceramic materials. 


Design and construction of machines, 
equipment and Instruments for the oil and . 
natural gas. petrochemical, electrical, nu- 
clear and textile Industry. Modtdarand auto- 
mation systems. 




SArtpPetroi' 





Refining and distribution of patrefaum pro- 
ducts In Italy and abroad. Energy conserva- 
tion and efficiency services and oiMrapfaeo- 
ment energy sources. 


Base petrochemical^ plastics, .synthstlc 
robber, chemical products for agriculture, 
synthetic fibers, rew materials far deter- 
gents, tachnopolymers. speciality chemi- 
cafa. end pharmaceuticals. 


Production and supply of textile industry 
machines. 

Wail gas boiler production 




SWnMra 



mmsmmwm 

Supply, transmission, distribution and sale 
of natural gas. Transport of oB and petro- 
leum products. 


Land and offshore drilling. Land construc- 
tion (pipelines, industrial plants). Offshore 
wo>*s (seaBnee. platforms, twminafa. stej. 


financing Industrial and oommardai eethH- 
tias of the 0VI group. 





- 




' 


Integrated coal cyda: exploration and mi- 
ning. irrfrastnictura and transport, transfor- 
mation end processing. International mar- 
keting, sdentffteand technologic*! research 
for developing and unbzlng coel and its deri- 
vatives. 


Study, engineering and construction of che- 
micai, patrochentacsL refinery and gadtrem- 
ment plants, On -land and underwater ptpg- 
Itnes. offshore technology, industrial and 
Kotogloal installation* end large Mretouc- 


Finance for EM group actMtfaa abroad. Pur- 
chase, sale, management and hoHfing of 
stares and securities. 


EEni 


Foreign banks in Italy 



THE MAIN talk of the' foreign 
banking community in Italy has 
for some time been, and remains 
r, foe "situation* at Barclays 
In Milan. For the past two 



ties and management problem* 
and only now, thanks to a tough 
restructuring programme, Is any- 
thing Like a dear strategy for the 
future beginning to emerge. 

Barclays Is by no means the 
only one of the 85 foreign banks 
operating In Italy to face difficul- 
ties - indeed, some two-thirds of 
the foreign banks are expected 
to close 1987 in loss and at least 
two banks are giving serious 
thought to packing their bags 
and abandoning Italy altogether. 
But the Barclays 'situation” has 
certainly been the most extreme 
example of what can go wrong 
in the Italian market 

Mr Guido Rosa, the general 
manager of the Italian subsidiary 
of Societe Generate of France 
who serves as chairman of th? 
Foreign Bankers' Association, 
complains of numerous problems 
for his members tqid says bluntly 
that *the future is not very 
bright” 

Mr' Rosa, Uke other foreign' 
bankers, highlights two principal 
problems, namely those of fund- 
ing and of state bureaucracy. 

The first problem is that with 
only two notable exceptions for- 
eign banks in Italy do not have a 
deposit base to draw upon and 
must therefore go to the lire in- 
terbank market, which is very 
thin and often illiquid. Interbank 
funds are so costly for foreign 
banks that they frequently find 
that their corporate clients can 
obtain loans more cheaply from 
Italian banks. 

The second problem is one of 
bureaucracy and fiscal head- 
aches, For example, a 2Q per cent 
witholding tax is imposed on in- 
terest earned on interbank loans. 
Most Italian lending banks find 
this a disincentive to extending 
back-to-faacks to foreign banks. - 
the Italians may prefer to lend at 
a lower rate to companies than 
to have to deal with the withold- 
ing tax Then there is the famous 
botla (or stamp duty), that needs 
to be tacked on te forward for- 


eign exchange contrecftt, com* 
mercial paper deals, securities 
transactions and many, other 
Rems. 

"AH of this' |i 
our life," corns 
foreign banker. 

Among the most profitable for- 
eign banks In Italy are Morgan 
Guaranty, which earns heavily 
on forex dealings as. well as its 
corporate loan book, and Citi- 
bank and Deutsche Bank. These 
last two are the exceptions in foe 
foreign banking community be- 
cause they have decided to pay 
premium prices to acquire a -lo- 


Bardays Bank in Italy 
Is not the only foreign 
institution to have 
faced serious prob- 
lems. 


cat bank (and branch network.) 
and develop their activities with 
a substantial lira deposit base. - 


disjointed diversification and ex? 
. pansion programme that saw 
j fjaifr and overhead costs going 
out of control. 

■ \ To compound matters Barclays 
"found itself with a fearing joint 
venture partner in Turin who 
was accused of fraud and that 
resulted in L40bn write-offs In 
the yearn 1982, 1983 and 1984. 

After foe leering scandal, tor- 
days faced heavy bad debt prob- 
lems an its retail banking ride 
and at foe end of 1985 the alarm 
bells sounded back is the Lon- 
don head office as the Barclays 
Italian operation incurred losses 
of L52bn, (L45hn bad debts writ- 
ten off -and L7bn of trading 


bank subsidiary of the Bank of 
America- The 98-branch network 
has catapulted Deutsche Bank to 
the top of foreign banks and the 
network has a significant' retail 
banking business. - * 

Citibank, meanwhile, in 1985 
SI 30m to buy foe 43-branch 
taples-faased Banca Centro. Sud. 


& 


with 12 times as much- 
■ The Italian juxfoorlties would 
welcome further outright acqui- 
sitions by foreign banks, in pint 
because of foe view that .foe 
competition might four .an im- 
provefnent in Italian bank ser- 
vices- But Italian banks do not 
qcmie cheaply and few foreign 
institutions are ..prepared to pay 
foe hefty premiums being asked. 

As for Barclays Bank, it looks 
as though it is about to turn foie 
pomer after a period which can 
only to described as disastrous. 

The bank's problems began in 
the early 1980s with a rapid and 


London's response was to des- 
patch two key executives in Jan- 
uary 1986 to deal with foe Ital- 
ian debacle. Mr Giles Cutayari a 
London assistant general manag- 
er, has been at work on the 
bulk's problems. And Mr Rich- 
ard -Adams, an energetic 42- 
year-old whose past includes 
stints running Barclays’ interna- 
tional energy portfolio and work- 
ing bn foe Eurodollar side, was 
made country manager for Italy 
and came out to Muan to- faze 
overall charge of bank and non- 
bank operations. 

Mr Adams has . had a tot 
time of it, but be has , made 
nificant progress in transforming 
foe Barclays potpourri of activi- 
ties into a good old-fashioned 
ite services unit. This 
:-to-basics strategy has seem 
some painful sell-offs of Barclays 
holdings in Italy, a radical cut- 
back of staff and, iq some ways, 
a ' major retrenchment. But foe 
action appears to be working. 

"When I cam here,” recalls Mr 
Adams, "we had 960 people. By 
the end of this year we wul have 
a staff of 360:" 

The bank, he fxpteips, took a 
hard look at Italy and decided, to 
aim at *a minimum strategic ob- 
jective, being part of the Bar- 
clays global network and deliver- 
ing corporate . services -to 
multinationals." . . . 

The two big problems that Mr 
Adams faced - foe legacy of leas- 
ing fraud and huge bid debts, on 
foe retail ride -» were symptomat- 
ic of . a business that was out of 
control -, "w? were 4 marketing- 
driven organisation which ex- 
panded very fast in an ineffi- 


cient and unfocussed he 

minuts today.' 

The restructuring saw Barclays 
Mil out of retail banking fn Ita- 
y, first by calling to loans and 
Aiminatirtg most reiafi sendees 
and then py selling the Barfidi 
consumer credit business to So- 
dete Generate. Although profit- 
able. this business would have 

implied heavy j»pl»l invest- 
ments at a time when foe bank 
had dmded to stick W foe corpo- 
rate ride. 

Mr Adams received a. good 
price Tor Barfidi. reported to 
banking circles to have been 
near tp foe stee of foe Barclays 
1985 loss. Last month he arid off 
Barclays' Milan and Bologna 
branches to Banca Antonians, a 
Padua- based co-operative bank. 
These two deals alone saw the 
shedding of a total of 382 em- 
ployees, 

- BNB Factoring and BNB leas- 
ing, two Barclays ventures with 
the Banco di Napoli, were sold 
off to the latter. Barrel, a factor- 
ing business, was sold off to the 
Coin family which had held. an 
initial stake in iL What remains 
is foe corporate banking divi- 
sion, foe Barfac factoring busi- 
ness and for the time being, an- 
other factoring business exiled 
BACRL 

■We have three business areas 
to run from run* on." says Mr 
Adams, and he lists them as cor- 
porate banking in Milan and 
Rome, investment banking and 
securities business which will fit 
into the Barclays de Zoete Wedd* 
international framework and 
some factoring and leasing busi- 
ness. 

The bank's 1986 loss was 
L18bn and when tearing losses 
were considered along with prof- 
its from consumer credit and fac- 
toring the net result was a L35bn 
loss-on the non-bank side. 

This year the overall Barclays 
inmy in Italy is expected to to of 
the same dimension as in 1986, 
■while 1988 is targeted for 
break-even. It would seen more 
realistic, however, to think of 
reaching break-even to 1989. 

in many ways the Barclays sto- 
ry in Italy is a cautionary tale. 
The question that other foreign 
banks are now anting themselves 
- and Barclays - is how they, too, 
can rations Use in a difficult mar- 
ket 

Ajtoft FMwfrium 


w 

Jest.-.: -..mhA^ZOi 


AL LA 


Diretlore artistic© 

Cesa-eMazzoois 


Sovrintendeote . 

Csri* Marla Bedori 

Dtrettore muscafc 
Rkxardo Mat! 


Dtrettore ddCeto 
GiaBoBertoia 


Stagione 1987-88 


Don Giovanni 

Musica di Wolfgang Amadeus Mozart 
Diifoore: Rkcsrdo Muti - Regia di Giorgio Strfoler 
7,I0J 2,15,17,19^2,24^^0 dwendwe W87;2 bhu»» 1988. 


Musica di Piotr life CiaikovskH 
Dsnsttore Michel Sanson 
Coreografia e regia di Rudolf Nureyev 

16, 18,20.3 1 dkembre 1 987; Sf due rappr,). 

. 5.6, 10 (due rappr. igemvuo 1988 

Giselle 

Musicadi Adolphe Adam. . 
Coreografia . 

di Giovanni Caralli e Jutes Ferro* 
27,28 febbraio; 

1 ,24,4,5 marzo 1988 (ai Teatro Unco) 

IdneFoscari 

Musica di Giuseppe Verdi 
Dqettore: Gtanandrea Ga vazzepi 

Regia dl Pier Luigi Pizzi 
I2.15.17.21UJ geimaio; 3.6 febbraio 1988 

DerffiegendeHo&raiKier 

Musica di Richard Wagner 
fEdiziooe in lingua originate) 
Dimiore: Rkxardo Muti/Waher Writer 
. Regia di Michael Hampc 

24.25 .27.30 marzo; 

2.5.8,10, 16.20 aprite 1988 • 

ApoDon Musagete 

Musica di Igor Stravinsky 
Coreografia di George Balanchine 

Olio (da M Les VateqaeanO 

Muskadi Richard Wagner emustcaiodti 
. Coreografia di Maurice Bdfrrt 

JLecorsalre 

Musicadi RiccardoDrigo i 

Coreografia di Marius Petipa 1 

Five Tangos 

Musicadi Aster -RazzoOa 
Coreografia di Ha« van Mapen 

15,16.17, 19,20.2 1 ,22,23,24 gemtaio 1988 
tel Teatro Nubvo) 

mn 

L’ettsfrcFaiDore 

Musica <fi Gaetano ffonizefo 
DiietlorE . 

^iegladfArtdrfe RathSIwuraalt 

14,1 7. (9,2 J ,24,26 aprite 
15,18,24,26,29 eaaggio 1988 

La SDe zrial gardde 

MtKiea di PHer'Ludwig Hertef 
e Ferdinand Henrid 

Daeoore: Michri Sasson 
' . Coreografia di Heinz Spoerfi 

15. 17^23 (<tea rappr.) sprite 1988 

Fetogte . 

Musics di NrccoK) jonuncHi 
Direttorc Hans Vook 

Regia di Luca Rorwoai 
(PrimarafprescHtaHoneta lu&o} 
30gennaio 1988: 

2,4,7,9,014 febbraio 1988 

Five tangos 

Wfaskadi Astac Piazzofla 
. Coreografia di H^ns van Maqeq 

PsEooadoe 

Bolero 

Musica di Maurice Ravel'. 
Coreografia di Maurice Btfjart . 

- 28^9.30apr0e;3.4,5,6,7magQo 1988 
Cal teatro Liribo) 

Adriana Lecoovrear ~ 

Musica efi Francesco COea 

Direttcre: Giuseppe Patau* 

Regis dlLambenoPuageffi 
(AUattm^iKcopn&Ooneam 
UTeatro Commote dl Bologna) 
20.23.25.28 febbraio; 1,4,8 marzo 1988 

L’aBgeioazziUTO 

Mvlcgdi Maffri Constant 

Pirettore: Micbd Sassoo 

Coreografia di Roland Betft 
(Capro&atoatBatkf Rational tie 
MarseiUefDeutsOe Optr Berlin) 

26,28 febtaafcr. 5,6 (doe rappr.), . 

1 1,13 (doe rappr.) marzo 1988 

Zsri^ttui 

Musica di Nicolaj Rimsku-fCorsfoov 
Krettore: Vladimir Fedossecv 
- Regia di Luca Roncoui 

5.6.7 mauio 1988 (al Teauo- 
"Romolo VauT diRtgao Emilia) 

■ 13,1445,17,19 maggio 1988.' 

(al Teatro UricodiMilano) ’ 


Montag ans LScht T~ 

Musics * 

Karlheinz Stockhausen 
Dirrnori; Karibrinz Stockhausen, 
Peter EBtvdes, Jan Ptisveer 
Regia di Michael Bogdanov 
{PrtntarappresentaPone assobaa) 

7,8 (due rappr.), 

19,1 ! (due rappr,), I2raaggkj 1988 

“ La Saftfe" ^ 

Musica dj 

- Hermann Scvcrln LOwcosfoold 
Djrettonr: Michel Sasson 
Coreografia di Flemming Flindt 

21 «22(due rappr,) maggio; 

•1,3,5 (due rappr.) gruguo 1988 

LaHoh&ne 

Musica dj 
Giacomo Puccini 

pirettore: Carlos Kleiber . 
Regia e scene di Franco ZeffireDt 
2.4,9 , 1345.18 gjpgno 1988 - 
^ Wabocco - 

Musicadi 

V _ Giuseppe Verdi 
KreflorcBccsidoMmi. 

Regia di Roberto DeSimone . 

14, 1 7.20.23.25 grugno 1988. . 

~ deileatro Kirov 

21^3,24J25.26(dner^pOgingnol988 


Serata dfgala ~ -T ~" T7 
(teiSolisti del Teatio Kirov 

22giugno 1988 . 

~~ bon Cbisdotte ■ 
Musicadi 
Ludwig Minima 
_ for cflQrc: Micbel Samson ■ 

Coreografia e regia dr Rudolf Nnreyev 
. 34,27,28^,30 gjpgno j9gg 

Turanckot 

Moskadi . 

Giacomo Puceng. 

■ Dm lore: Lorin Maazcl 
Kega escene di Franco' Zeffirelli ' 
7,9,1 ljugtio 1988 i ' ' 


Orchestra Coro e Corpo di BaUo dd Teatro alia Soda 












OIL. Wherever it is, we’ll find it. Oil 
is the primary source of energy. It is 
the power that moves the world and 
will be so for many years to come. 

But, it is necessary to be prepared 
to wrestle this treasure from the 
earth's most secret strongholds, using 
the latest continuously evolving tech- 
nology, and to venture into hostile, 
inaccessible places. 

Agip, Italy's national oil company, 
tqok up. this challenge sixty years ago, 
probing into the origins of the earth, 
experimenting with new techniques, 
and devoting to these activities 
human and economic resources that 
are always up to the difficulties to be 
overcome. 

Wherever the possibilities of 
Gnding oil exist, Agip is present with 
its spirit of initiative and decades of 
experience. The results achieved, 
alone or in cooperation with leading 
oil companies, in 30 countries, on 5 
continents, make Agip a reliable 
operator in any oil activity. 

Even where no-one has ever 
reached. 




i^i irawig]' ! ®»es;Tq^dajf November If 


ATA-Univss 


m- 


Wherever it is, we 11 find it. 











viir 


Financial Times Tuesday November 17 1987 


( ITALIAN ECONOMY 8 ) 


Developments in merchant banking 

The Italians grow their 


own institutions 


MERCHANT BANKING was a 

distant dream when governor 
Carlo Azeglio Giamni first men- 
tioned it m bis address to the 
central bank's annual meeting in 
May 198a 

The realisation of that dream 
was much nearer when he spoke 
at the end of May last year, with 
the Milan stock market then 
booming, the need for specialist 
financial Institutions was even 


more strongly felt 
significant 


*A significant contribution 
should come from banks, direct- 
ing clients of the appropriate size 
and prospects towards quotation. 
This underlines the urgent need 
for developing merchant bank- 
ing activity, within a suitable 
regulatory framework* said Mr 
CiampL 

The restructuring and return 


ea fs the management of corpo- 
rate financing operations, both 
through .loans and risk capital 

The third activity in which Ital- 
ian banks can now participate, 
through subsidiary, merchant 
banking companies Is invest- 
ment in shares and bonds. . 

Italy's banking law, which was 
enacted 51 yeans ago, rigidly for- 
bids investment by banks in the 
share capital of industrial and 
commercial concerns. Following 
the bank crashes which rocked 
Italian finance in the 1920s and 
1930s, a strict separation was en- 
forced between banks and the 
wider world or business. The 
need for separation continues to 
be firmly upheld by the central 
bank. 


current and savings accounts 
and certificates of deposit. 

The chance of following the 
fashion of merchant banking has 


been offered only to a limited 
credit 


number of credit institutions. 
The authorities consider that 
membership of the select group 
Should not be open to allcomers. 
Permission to take majority 
stakes In financial Intermedia- 
tion companies is only being 
granted to banks of suitable 
and organisational structure. 

'Smaller banks which Intend 


to health of Italy's* big corpora- 
mid-lf 


Commercial banks are kept at 
lerchant 


tions during the mid-1980s 

due to a combination of factors. 
Not least were the large rights 
issues, the placement of which 
was facilitated by the newly-au- 
thorised investment funds. In- 
creases in share capital permit- 
ted a reduction in corporate 
indebtedness, establishing a vir- 
tuous circle of improved results 


and higher investment. 
Small am 


. and medium sized firms 

have been less well-placed to un- 
dertake modernisation pro- 
grammes because of the cost of 


money and their low equity baa- 
firms’ risk cai 


ca pital 

is seen as an important objective. 
Merchant banks are therefore to 
be key Instruments for effecting 
structural change in manufactur- 
ing industry. It is felt that banks 
should be involved in this pro- 


arms' length from m 

banking operations. Moreover 
the authorities have carefully de- 
fined what operations are al- 
lowed and what are forbidden. 
Shares and corporate bonds most 
be acquired with regard to their 
profitability, at the same time 
ensuring a suitable spread of 
portfolio risk. 

No single investment is al- 
lowed to exceed 20 per cent of a 
merchant bank's (capital 
or reserves). According to the 
Bank of Italy, the criterion of 
expected profitability means that 
operations must only involve 
firms which offer valid economic 


In Italy, commercial 
banks are kept at 
amts’ length from mer- 
chant banking 
operations. Moreover, 
the authorities have 
carefully defined what 
operations are allowed 
and what are forbid- 
den. 


Mr Clam pi’s exhortations led 
to more than committees, confer- 
ences and learned papers. Action 
ensued with unusual rapidity. In 


February, less than four years 
after Mr Cu ■ - - - 


— Ciampi first broached 

the subject,- the Intel-ministerial 
committee for credit and savings 
(CICR) issued a ruling which al- 
lows banks to take stakes in 
companies operating in the field 
of financial intermediation. 
CICR's ruling was quickly fol- 
lowed by the publication of a 
detailed regulatory framework. 

The Bank of Italy has author- 
ised three main areas of activity. 
The first is consultancy and as- 
sistance in corporate finance, 
with particular regard to invest- 
ment funding and corporate de- 
velopment, including mergers 
and acquisitions. The second ar- 


— .tions aimed at 
salvage or the recovery of bank 
loans lie outside the area of mer- 
chant banking,' notes the cen- 
tral bank. The authorities ahw 
emphasise that shareholdings 
must be minority and temporary. 
This ruling, tied to the require- 
ment for a division of risk, at™ 
to prevent merchant banks from 
having control or being involved 
in the management of firms in 
which they hold stakes. Italy’s 
financial Intermediation compa- 
nies are not allowed to engage In 
portfolio management for third 
parties. 

The regulatory framework is- 
sued by the Bank of Italy sets 
the minimum share w pi te l at 
L50 billion, though this amount 
may be altered by the authorities 
to take account of changed con- 
ditions. In order to keep their 
liabilities balanced, Italy's mer- 
chant banks are not permitted 
borrowings exceeding twice their 
capital They are forbidden to 
employ normal instru- 

ments for collecting funds Hv» 


to be present in the sector should 
esta b li s h companies with share 
capital as dive r sified as possible, 
taki ng ca re to ensure that inter- 
nal organisations are based on 
criteria of professionally and ea- 
I»ble of agile operation," notes 
the central bank, in recommend- 
ing collaborative ventures. 

Banca Nazionale del Lavoro 
(BNL), Italy’s biggest bank, was 
able to beat CICR's starting sig- 
. nal because it operates a special 
section for industrial credit 
Through this section H estab- 
lished FTnanziaria Italians dl 
PartecipazionI (FTP), essentially 
an investment bank, in April last 
year. 

BNL’s section originally held a 
73 per cent stake in FTP, the rest 
of the share capital being 
by two BNL s ubsid iaries, £fi ban- 
es and ICLE. FTP's aims are to 
take minority holdings (10 to 25 
per cent) in healthy medium- 
sized companies and prepare 
them for quotation. 

At the end of last year FIP bad 
a small but diversified portfolio. 
Its first investment, matte in Sep- 
tember, was a 14.4 per cent stake 
in the Bolognese bus maker Men- 
arini. This was followed by 20 
per cent in IAC, a clothes maker, 
15 per cent in Nuovo Sipre, a 
carpenter, 10-9 per cent in 


Leopoldo Biasi, a Veronese man- 
ufacturer of heating baOera, and 
5 per cent In Clset, a company 
servicing avionics and telecom- 
munications equipment. 

FIP has undergone Important, 
changes during its brief period or 
activity. In March BNL reduced 
its total stake to 76 per cent toi 
make room for the insurance! 
company, SA3, and a group of 38l 
Italian Onus. These included Pe-J 
senti, Varasi, Trussanfi, BeUeli, 
Coe & Clerici and MerionL 

Further widening of FlP’sj 
shareholder . base in June 
brought the number of Italian, 
firms- to 45 and the arrival of 
four foreign investors. BNL’s 
partners in FIP now include 
Shearaon Lehman, Svenska Han- 
delsbanken and M m^wd - Roths- 
child. 

That the Istituto Bancario San 
Paolo di Torino has ambitions toi 
be a leading player in merchant) 
banking was made clear when 
the Turinese institution took a 1 
6.4 per cent stake in HambrosJ 
Explaining the deal made last 
autumn, the Sanjpaolo’s chair- 
man Gianni Zanouii said that 
the shareholding in the London 
merchant bank provides a way 
of gaining financial know-how 
and access to placing power. Mr 
Zaridano sees significant possibil- 
ities for business with Hambros. 

The Sanpeolo's chairman out- 
siders that rally 2 or 3 Italian 
hanks will have the muscle to 
survive as major players in inter- 
national finance. His determina- 
tion that tite Sanpaolo should be 
rate of them explains the Ham- 
bras venture ana the steps taken 
in merchant haninng at home. In 
partnership with Istituto Mobi- 


ITALY'S corporate - treasurers 
have learnt some sophisticated 
tricks during recent years. They 
have been bringing sharp «irflfa 
to money management which 
have left most commercial hawk* 
Incapable of 'rapid ami effective 
response. 

financial controllers and titer 
treasury whizz kids have been 
beating the banks at their own 
game. This is the conclusion 
which the monetary anthftri ti** 
in Rome have reached. 1 

Analysts at the Bank of Italy’s 
headquarters have used two ap- 
proaches to attempting to mute- 
stand what has been ttappening 
in corporate finance. Their ma- 
cro-economic model has been 
used to look for evidence of 
breaks or shifts in the relation- 
ship between credit and real ac- 
tivity.. 

The analysts have discovered 
that this relationship ‘has recent- 
lyjiecame very unstable, with 
high levels of ’noise' attributable 
to overnight rates. The central 


Money markets 



bring a note 
of caution 


Italian Discount rate 


bank's micro-economic approach 
consisted of de- 


ltas essentially 

ploying its antennae to capture 
Ion from banks ana ath- 
in Italy’s financial 

Lets. 

They confirm that the phe- 
nomenon of round-tripping has 
occurred in significant measure; 


Large corporations, enjoying 
good results and healthily recap- 



readity recognise the disadvan- 
tages which are associated with fc 
ceilings. Principally the draw- “ 
back is that the measure reduces 
compel! tivity within the credit 
system. It lowers efficiency by 
treating all banks identically. 

The most efficient banks are pre- 
vented from growing at the pace 
they wish. . 

The second negative aspect of 
ceilings la that they encourage 
hanks to seek methods of eva- 
sion. During previous periods of 
lending the central hank 

uncovered various ploys to ex- 
ceed limits without incurring 

penalties. 

Retail banks directed their cus- 
tomers to affiliated special credit 
institutes, or to their foreign 
branches, which were not ab- 
ject to the ceilings. The banks 
also resorted to breaking up 
loans into amounts which would 
lie underneath the recording lim- 
it. 

When ceilings were last In 
force the authorities used quar- 
terly returns to verify adherence 
to them. This gave too much 
space for manoeuvring loans on j 
die books. Banks now face ■ 
monthly checks which cut their 
possibilities of cheating. 


Bare Italiano f IMI), the Monte 
di. Siena. 


dei Paschi di SieiuC Cariplo and 
i di Ncr 


italised with fresh risk capital, 
have found themselves comfort- 


1985 


1986 


1987 


ably liquid. 
They ha 


,-.57 have not hesitated to 
wield titer financial weapons by 
employing bank loan facilities to 
turn a profit on the overnight 
market. Astute treasury manage- 
ment, using the various tools and 
instruments now available, has 
permitted the profitable round- 
tripping journeys on which Ital- 
ian corporations have embarked. 

Faced with penally high inter- 
est rates during the first half of 
the 1980s, companies gave spe- 
cial. attention to the treasury- 
function and financial manage- 
ment Computer mod els werede- 
v eloped and used to minimise 
crippling financial charges and 
interest payments. Now in better 


Central bank figures show 
the overnight rate was over 
12 per cent in May and June and 
pushing dose to 14 per cent in 


the Banca Popolare di Novara,, 
the Sanpaolo holds a 20 per cent] 
stake in Ftnbancarla. ' 
Complementary to its share- 
holding in Finbsncaria, Sanpaolo 
has also established Sanpaolo Fi-l 
nance; a company with LlOObn 
of share capital This Sa 

subsidiary offers corporate 

dal advice to clients, manage- 
ment and participation In under- 
writing syndicates, investment 
in minority shar eholdings, acqui- 
sition of venture capital stakes 
and international corporate fi- 
nancial assistance. - 
BNL and Sanpaolo are two of 
several large banks which are 
now taking the opportunity of- 
fered fay CICR's ruling. In con- 
trast, HU'S three national Interest 
I page 10 


times these weapons continue to 
the banks. T 


be used against 

That Italy’s large industrial 
corporations have been acting 
like banks is due partly to histor- 
ical factors and partly to lm- 
proved health which allows 
them this possibility. However, 
the banks also encourage Indus- 
trial concerns to act as competi- 
tors in the credit field. 

The lasso Fiat is a subversive 
reality in Italian banking. The 
interest 


Fiat 


Tate is widely ap- 


plied on tending to top corpora- 
gh tiie exact rate is 


tions. . Though ... — „ 
not published, senior bankers 
confirm that it is around 2 per- 
centage points below prime rate. 


Starting the year at 13 per 
half! 


cent, prime rate fell by 


point in February to 12.5 per 
eptember’s . 


cent. With September's measures 
It was raised to 13 per cent 


August, thus giving scope to 
quick-reacting corporate money 
managers. 

Officials at the central bank 
wonder how the . commercial 
banks can obtain a positive re- 

turn from loans at the tasso Fir 
at. They consider Chat loans 
should not be given for window 
dressing and reasons of prestige. 
There is concern that such 
operations foil to satisfy require- 
ments for transparency and, 
moreover, that they demonstrate 
banks’ weakness with respect to 
their corporate customers. 

. However, with the re-introduc- 
tion of lending ceilings in the 
middle of September there has 
apparently been a reduction in 
round-tripping. The ceilings 
have introduced a dampening 
note of caution. Few banks pos- 
sess sophisticated treasury man- 
agement systems and this causes 
careful decision-making by man- 
agement 

The penalties for exceeding 
the ceilings are strong deter- 
rents. Banks which break titer 
limit of credit growth by be- 
tween 1 and 3 per cent will be 
required to deposit 40 per cent of 
the excess with the Bank of Iter 

fy- 

For rising between 3 and 6 per 
cent above the ceiling, the depos- 
it penalty, which earns no inter- 
est, is 80 per cent of the 


Above .6 per cent the deposit 
penalty is 100 per cent 
The basis for calculating ceil- 
ings is average lending In the 
three months February to April 
tins year. According to the cen- 
tral bank, in this period seasonal 
variations between individual 
banks were particularly low. ' 
The limits which nave been 
laid down allowed lending 
growth of 2J5 per cent at the.ena 
of September and 4 per cent at 
the end of October. The ceiling 
at the end of November has been 
set at 4.5 per cent above the 


serve the sharp upswing in re- 
md half of Sep- 


Wben the ceilings are removed 
at the end of March, the Bank of 
Italy wants to see bank lending 
at no more than 6.6 per cent 
above the base. 

By imposing ceilings on bank 
lending, Italy's monetary author- 
ities have returned to a measure 
which had been dropped only 15 
months earlier. However, the 
central bank draws attention to 
the different reasons underlying 
the use of the restrictive mea- 
sures: the currency crisis at the 
start of 1986 and excessively rap- 
id growth in lire lending this 
year. 

The authorities say that lend- 
ing growth was caused mainly 
by the conversion of foreign cur- 
rency loans into lire. Lending in 
foreign currencies dropped by 
the equivalent of L3000bn In the 
three months from June to Au- 
gust. 

Officials at the central bank 


serves in the second 
tember, following the measures 
which had been adopted. 

It seems that banks have not 
had difficulty in keeping within 
the lending ceilings. There has 
not been a- traumatic tightening 
of credit. The rise in bank inter- 
est rates has not matched gov- 
ernment bonds. Between August 
and September the average SOT 
yield rose by 0.9 per cent to 11.8 
percent 

Over the same period banks 1 
minimum lending rates in- 
creased by 0.5 per cent to 122 
per cent while the average rate 
moved up by 0:4 per cent to 13.7 
percent 

it seems that interest rates 
have bottomed out The yield on 
12 month treasury bills issued at 
the end of October was 122 per 
cent, compared to the low point 
of 9.7 per cent at the beginning 
of April 

But forecasts for the future are 
not unanimous. Some bankers 
expect rates to rise by between 1 
arm 2 per cent over the next six 
months. Others believe that de- 
mand for credit will be slack, 
thereby depressing rates. Exter- 
nal factors will play a crucial 
part in determining how rates 
move in Italy's uncertain money 
market. 

David Lane 


jfti 

i 


Statistics on the money supply 
days 


are available within twenty ' , _ 
or the end of the month, which 
gives the decision-makers at the 
central bank’s headquarters a ba- 
sis far action as timely as that of 
the monetary authorities in 
France or the Benelux countries. 

They were quickly able to ob- 


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I 





i V 




t 












Financial Times Tuesday November 17 1967 


IX* 


( ITALIAN ECONOMY 9 ) 


■ *—* ■ 


**■■*:{< 


Financial services 



among savers 


;."V !I Bayers, found someone who knew what management company and too* 
^ ** Japanese, you.wera tatting about* kerage house. IMI also owns FS- 

* ' : they- kept Mutual funds have been, tttebig deuram which has probably the 

■■ r, v. money to the toal success story to Italy - at least widest network of commission 

"■> .■ bank, a but reliable inatttu- until last month's stock market agents in Italy for the selling of 
■ >’ which provided^ economic collapse shook those over-in- mutual funds ami the insurance 
K? *? "* chorch pro- vestedinequitJes. Some 70 funds prides of its subsidiary, Hdeu- 
v ?. d ^ spiritual, security. After had amassed L70,0Q0bn TSSObn) mi Vito, no got into the busi- 
^ w i“ to- of funds from &n savers iqr Sep- ness yearn ago. taking over the 

v ^ t *“ modem banking. . temberthis year, an extraordi- agents left behtocfbyur. Bemie 

S f we8teni nary development- in a country Comfeld’s notorious door-todoor- 
- * SSSfL-Tte 1 famfl yj“ lon ®y whose stock maricet used to be operation. JOS. 

... i. “teas, are sail quite .regarded - with some justifies- Behind IMI conus fund manag- 

- : more tfon - as a casino. Broken say cr Prime with t6.4bn of aa ' 

' ^PbjStlcaied formsof saying there is still & shortage of amafl- to its name. Prime is a Lw-ww 

*“■ been grow- e r . K p eqaU gt funds, especially for venture between the Agnelli 
. ’ <• **"*$8°“? P®°* oversees investment ^ - tomily and Monte del Paschi di 

' . *Tea8ui yb ilfa became popular The insurance industry, dnmi- Siena. RAS, the hig insurance 

of the decade, rated by the venerabfeGeneral- company owned by Allianz of W. 
ijtaly’s major (and some would 

ha/l«en In 

Industrialists Stake their claims 
to this new consumer territory, 
life insurance premium revenue 


SS’MLT* 7 70 are quite simple, but 


at the „ 

■' their share of 

doubling between 1980 and It 

; Mutual funds were launched at 
-* the end of 1984 and to one year 
-• a t tra ct e d nearly 316 per cent of 
family cash. . 

; By last year, according to one 
estimate, Italians were investing 
: nearly a third of their money to 
government bonds, 12 per cent 
. to equities and nearly? per cent 
to mutual funds. The banks 
found themselves holding a mere 
46 per cent of their customers' 

. cash com 

per cent si 

This seismic shift to family at- 
■ ■ titudes has started a tot of puah- 
ing and shoving in the financial 
' services marketplace. The pri- 
vate industrial conglomerates 
> who already dominate Italy's big 
< bumness sector have been out 
shopping: a third of Italy's insur- 
ance companies are said to have 
seen a. change' of control to the 
■' last 2th years, for sampl e . 

•' Foreign financial services com-, 
•i pantos -with the money manage- 
ment skills still rare in Italy have 
: come looking for partners. Sm»n 
. entrepreneurs, same of dubious 
_ ethics, have joined the. throng of 
: purveyors of the new goods - 
unit trusts, life insurance; pen- 


Gennany, with its offshoot Dival 
to reckoned to he the third lar- 
gest in the market. 

Recent activity testifies to the 


By the standards of 
most of Western Eu- 
rope, Italian family mo- 
ney management Idoaa 


on. Fur example, Gemina, 
hancial company owned by Fiat; 
Pirelli and the state merchant 
bank Mediobanca, announced it 
wasbuying a stake in Intarconti- 
nentale insurance from Latina, 
one of Carlo de Benedetti's con- 
cerns. 

Latina had three months be- 
fore taken control of NorditaHa, 

the market for more a 2?? er . toamuice company, to 

aoplilstlctated fonna of last year. ■ 

savlne and Investment 

has bean growing at a romobiiiare to Mr. Rani Gar^m, 

. . . the voracious boss of agrotodus- 

ISSt rate. trial group Ferruzzi. Ferruzzi 

subsequently found itself in indi- 
rect control of the Florentine in- 
surance company La Fondlaria 
when Montedison, the Ug cheml- 


has been, growing at an annual 

rate of over 30 per cent, but fa _ 

still relatively small at about cal company that Ferruzzi con- 
L4,000bn. 

Meanwhile, a new market far 
individual and oom 


trois, snatched a key stake. 
Mcmtethson's move was regard- 


**“— “ ;l-$ srssssi’a'SSs 


on - system to 

to be on the~brink 


to some financial 


money into the hands of -some 
individc 


part oi . 

Schlmberhi, who incurred the 
wrath of Flat's Giovanni Agnelli 
__ who- had his own designs on La 

Italian industrial Fondtorto. Montecttson, too, has a 
companies are looking for liquid- serv jf^j company. Ini- 
tial who comes round to tof, not primarily for profits - Meta.^wni ch rec ently re- 
tire house late at night,' says Dr. although there are profits to be heaJ *“ y p rontu nprove- 

Antonio CortL, managing director ment of over 60 per cent 

°f Ftoanza ft hittoo, a newjofot Xonmeitfes Hke Ptot set up fi- Just to add to the picture, one 
; venture between Cano de Bene- naitctol .services so they can of Montedison's shareholders 
holding company, ^Cafidky place thelr equl^ in filemily (who °S^Ses to 

9wmson Letonan fc^Sers and Mnda, said one broker. Foreign and in ge companiea) 

sasaWAit 

ta Assicuratrlce Italians (SAl), 
. The pggBat to iw in the mar- «nother lrfg insurance group. ■ 
ket to the state credit agency ‘Isti- m ^ ^ 

Cuto MobOfars Italfauio (Du). Os • Among those breaking into the 
quasi-independent investment business for the first time is the 


the Banco di Roma. 

'If the . banks were efficient, 
the industrial groups would not 
v have got to. But the batiks “Were 

not servicing people. Being 

state-owned or oontzoBed,' they 
had no way of giving their em- 
* ptovees the incentive.- • 

"If you wanted to buy stares 


you had to queue up at a >*»»•»*• 
three or four 


counter, then ask 
different, people 


banking arm SIGE, due to float Benetton family, the Ventian en- 
ure who 



Equities 


25-30 per cent of its equity short- trepreneura who have built a 
before you ' ly, claims to be the trading asset worldwide business in cheap and 

.cheerful casual clothes. Their fi- 
. nan dal • services company. In 
Holdino, is still bring construct- 
.ed with the help of foreign and 
domestio partners. - 

- Many fond mansgers bdleve 
the financial services market is 
dose to saturation now to terms 
of the number of competitors, 
even if it has a long way -to goto 
toms of sales. Dr. Card of Fto- 
araa & Futuro says he cannot 
see. uiy big new entrepreneurs 
coming In, while some of the 
smaller ones must fall by the 
wayside. 


Forecast ol Italian savings patterns 


Percentages 


Cash 

Fixed 

Interest 

Mutual | 
funds 1 





Private 

portfolio 




1986 

1991 


'Only those who can . premise 
both to make money for people 
aruTto give them security will 
survive. In this business you 
need reel capability in both mar- 
. and to financial e n gr te e r - 


.0 10 
Source: Sanpetrio Invest 


20 


30 


40 


50 ing, hesaya. 


Christtea Tyler 




CREDIOP 

(. orjs - o«. - iO Cni -. r - • 




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Medfuai and long-tmn credit fosttute 



(Pri*c*Mtjtnryl>o<fy 
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# LOANS TO WDU5TOAL 
CQUMERGHL MO 881ViCe 
COMAMCB.- . 

# LOANS TO PUBLIC 
AUTHOfimEB AND 1HBR 
AGENCIES 


e EXPORT CREDITS 


mtoomce 


Via Ouintlno Seta. S 
IW 0647711 
TW«8nO»CfiW*HOI 


MOKHULomcae 


Vh Brant 19 

NAPLES 

VfaMadna.40 

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AI1QCIA1IU i 
eAFM&pA-Rm» 
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Affa«V • . 

• €NBNnUtSgJL-l)oM 

capmpmimm 

• camspA.Mton ' 
DufCnmV 

• PR6iWTI0&bA.-MBan 
ftdbtoifanaBaMantf 
rhinUWautonpa 


The Benetton s' new venture 


Real estate 




Edlzione 

Holdings 


M 


Benetton group 

85% 


In Holding 
100% 


Fund Investment/ Portfolio 

management - Merchant banking management Leasing 

I — L t —T 


Euromobllfare 

1 

In Capital 

Gestioni 35% 

I 

7S% ! 


3 



40% 


In Capital 
Gestlone 
100 % 



In Capital 
Tre Venezle 
100 % 


Distribution Insurance 


SIPI 

50% 

SiSSBE 


40% 


In Capital 
FIduciaria 
20 % 


Factoring Baridng 


Prudential 
Compagnla 
halo / Brftannlca 
Di Asslcurazlonl 
50% 


®^SI*83(ES£KES21** 


Source: to Holding 


Flnieaslng 

90% 





In Leasing f| 
100 % 



General 
Leasing Kj 
10 % 



The Benetton group diversifles into financial services 

Taking on the big names 


HAVING MADE a fortune from 
their fast fashion franchise busi- 
ness, the colourful Benetton fam- 
ily. (three brothers and &- sister) 
are hoping to repeat the perfor- 
mance to financial services. 

The move is a diversification 
for the family, whose joint worth 
is estimated at around filJihn, 
not for the clothing company 
they created. This time, more- 
over, the siblings will be relying 
largely on professional managers' 
from outride rather than on their 
own talents. As the eldest broth- 
er, Luciano, said recently: *We 
started out two years ago with 
the first ventures and we re- 
cruited some managers. Now we 
must leave them time to get or- 
ganised.* 

It was Mr. Aldo Palmeri, Be- 
netton group managing director, 
and Mr. Carlo GUardi^ finance di- 
rector, (both former Bank of Italy 
officials) who had the idea of 
branching out into personal and 
corporate financial services. 


Mr. Palmeri Is president of the 
recently-created financial ser- 
vices vehicle, In Holding, a whok 
ly -owned subsidiary of the fami- 
ly’s master company EdLtione 
Holding Sp A. The managing di- 
rector is Mr. Giovanni Fraiud, 
who. has been working outside 
Italy for the last 27 years, most 
recently on the investment bank- 
ing side of Merrill Lynch to Lon- 
don. 

‘I wanted to set up my own 
financial services company in 
London,* Mr. Franzl says. 'But 
they convinced me to come back. 
There's a lot of financial iwMnj 
and a lot of autonomy and it's a 
young, quick decision-making 
and entrqxeneurial group ’ 

With authorised ' capital of 
UOObn (which will be fully paid 
up by the end of the year). In 
Holding Is putting together a 
group comprising u nft trusts 
asset management, leasing and 
factoring, insurance, and mer- 
chant ana investment banking. 


The group also has 68 per cent 
of a bank in the little Adriatic 
republic of San Marino, not far 
from the family’s Treviso head- 
quarters. This was bought as an 
investment, but the Benettons - 
like other industrialists forbid- 
den major stokes in Italian banks 
- are. trying to think of ways off 
harnessing these “offshore de- 
posits to their new business. 

For the colourful Ben- 
neton family business, 
this latest venture Is 
an ambitious move. 

At this stage, perhaps the most 
important link in the chain, as 
for everyone in this new and 
crowded market, is the agency 
network. In Holding wants 100 
agents by the end of this year. 
400 by the end of next and l.OOd 
eventually. Established competi- 


tors already have several thou- 
sand agents. 

It is in the marketing of ser- 
vices that the Benettons dearly 
believe they can teach the com- 
petition a lesson. They will learn 
from ihetr own experience as 
clothing manufacturers who sell 
worldwide through outlets they 
control but do not own. 

'Benetton fa a company, hut It 
fa also a universe', Mr. Franzi 
explained. “There are suppliers, 
entrepreneurs, agents ana shop- 
owners who are connected with 
Benetton and who have become 
rich with Benetton. They already 
constitute a target market* 

Benetton moved into factoring 
and leasing in the course or 
building up its retail network: 
those interests are now to be 
transferred from the industrial 
group into the financial one. 

In Holding will not emulate 
Sean of the US which attempted 
to sell stocks and socks in the 
same shop. But it will try to 


adapt its franchising system to 
financial products by developing 
a network of 100 distribution ar- 
eas, each headed by a manager 
with ten salesmen (or 'financial 
consultants' as they are more po- 
litely called.) 

These financial retailers will 
be treated as small partners or 
investors, not just as agents, ac- 
cording to Mr. Franzi. They will 
be paid a maintenance fee on 
of their commission and offe 
long-term contracts to bind them 
to the business. Area, managers 
would be offered stock options as 
an inducement Go stay loyal 

It is possible that In Holding 
will go even further and foster & 
chain of franchised 'money 
shops* under its banner, separate 
from but in some way resem- 
bling the clothing outlets. 

The company believes that the 
Benetton name and sales tech- 
nique will readily translate into 
the very different language of 
financial services, while Benet- 
ton money will ensure that the 
venture gets a good start in life. 
Many of the smaller, single-prod- 
uct financial companies that 
have sprung up in recent times 
are said to be already in trouble. 

The real competition is likely 
to come from the familiar big 
names of Italian industry such as 
Agnelli, de Benedetti and Berlus- 
coni, and from the state or qua- 
si-state financial institutions. 

The Benettons have been buy- 
tog domestic and foreign exper- 
tise. For example, one of In 
Holding’s early transactions was 
to take a half share in the Italian 
subsidiary of Prudential Assur- 
ance of the UK, co sell casualty 
insurance. Two months ago, the 
partners set up Prudential Vita 
to top the fast-growing life insur- 
ance market. 

It has teamed up with another 
textile group, Gruppo Finanziar- 
ia Tesrile - Italy’s second largest 
after Benetton itself - and with 
three banks to create In Factor. 
GFT is also the sole minority 
partner of In Capital, the invest- 
ment and merchant banking 
arm. 

Two months ago, In Holding 
bought 35 per cent of Euromobl- 
liare Gestioni, a fund manage- 
ment company owned by Euro- 
mobiliare, a leading investment 
bank. 

The Benettons* new venture is 
still very young, but nothing if 
not ambitious. Uidano Benetton, 
the family's marketing ace, told 
a local periodical recently: “In 
this field we don't want to be- 
come important Just in Italy. We 
want to be important in France, 
in Spain, in the US, and in every 
country in which we have an 
industrial presence.* 

Christian Tyler 


II I L A II APRIL 1 6“ - 2 5*‘. GRANDE FIERA D’APRILE. 


E’NATO — 
A MILANO 

AND LOOKS 
AT EUROPE 
P0URSE 
FAIRE 
REGARDER 
IN DER WELT. 
SU N0MBRE ES 
PR0GETT0 
EUR0PA. 




fatf-y-Zf*-'. ■-**■*' 

fan ftfe-f&Md, '! > < 

v'. ! ' 

await fc&tt ;■$? 

fV’:" ' V J ^ ^ *■ «w 


















Financial Times Tuesday November 17 1987 


( ITALIAN ECONOMY 10 


External, borrowing 


Issues win investor appeal 


ITALY'S PROFILE in the KurtH 
markets has undergone a trans- 
formation in the last two 
months. Before September, it 
had not issued in its own name 
for more than two years. 

Yet recently, it has emerged as 
the most active sovereign bor- 
rower in an admittedly tnui new 
issues market, issuing first a 
SI bn bond and, last month, a 
Y3G0bn issue. These were respec- 
tively the largest ever fixed rate 
issues in their sectors. 

The issues mark a change from 
the Italian Government’s previ- 
ous policy of funding itself in 
the domestic market, which has 
been a key contributor in main- 
taining its triple-A status. 

Though total national debt 
stood at L7B3,000bn last year, or 
88.6 per cent of gross national 
product, the Government has . 
been aide to sustain its high lev-' 
el of borrowing because the pri- 
vate sector in Italy has always 
been a big net saver. 

But bankers stress Italy’s cred- 
it standing Is still not under 
threat, as the change to externa] 
indebtedness is only marginal In 
September (before its Euroyen 
issue), 94 per cent of the Govern- 
ment’s total borrowing of over 
L600,000bn had been arranged in 
the domestic market. 

Nevertheless, it seems likely 
that Italy will become a more 
frequent borrower in the Euro- 
markets over the next year or so. 

This is partly because the 
move to external borrowing was 
the mirror image of a liberalisa- 
tion of capital controls that the 
Italian Government carried out 
during the summer, which for 
the first time allowed Italian pri- 
vate Investors to buy foreign se- 
curities without having to lodge 
15 per cent of their investment 
in an account with the Bank of 
Italy. 

This means that the private 
sector should become more of a 
lender abroad, so it seems natu- 
ral for the Government to look 
abroad for more of its funding. 

But, as an unintended conse- 
quence, the liberalisation has al- 


so made It more difficult for the 
Government to fund itself in the 
domestic market. 

The change was supposed to 
come at a time of current ac- 
count surplus, so that there 
would be little difficulty in ac- 
commodating the expected capi- 
tal outflow without disturbing 
the lira's value on the foreign 
exchanges. 

But in face It came as the sur- 
plus was dwindling, so the looser 
capital controls pushed domestic 
interest rates upwards, to head 
off the pressure on the currency. 
The Bank of Italy, in particular, 
has wanted to -avoid devaluing 
the lira, because of concern 
about the inflationary conse- 
quences of this course. 

The Italian trade balance has 
been deteriorating much faster 
than expected. During the .first 
nine months of this year, it 
reached L8,67Qbn (46-84hn), dou- 
ble the figure for the correspond- 


the figure 
period in 1986. 


“go the fragility of Italy’6 exter- 
nal position, and relatively high 
Italian inflation, have created lit- 


tle room for reductions in Italian 
interest rates: unlike those in 

other countries, they did not fall 
during the recent stock market 
crash. The domestic investor Is 
therefore demanding higher cou- 
pons on the Government's 
bonds. 

At the same -time, there have 
been calls for stiff er controls of 
Italy’s government debt, which 
has failed to -come down this 
year, as was expected, because of 
larger-than-antidpated public 
sector pay awards. 

Political wrangles have led to a 
shelving of the coalition Govern- 
ment’s first budget proposal for 
1988, and the Cabinet is now ex- 
pected to adopt a new budget 
deficit target of around 
Ll04£Q0bn, against an original 
LI 09^500 bn. 

But in spite of all these prob- 
lems Italy is still strongly in fa- 
vour with Euromarket investors. 
This is partly because it has been 
such an infrequent visitor to the 
markets over the last few years, 
and partly because it has always 
paid reasonable rates. 


This is in stark contrast to 
some other sovereigns such as 
Denmark, which has gained a 
- reputation for tapping the mar- 
ket too often, and on terms that 
left little on the table for die 
investor. 

The third reason why Italy's 
last two issues have won inves- 
tors’ approval is that they have 
been exceptionally large. With 
concerns about the liquidity of 
the Eurobond market growing, 
investors are now much keener 
to see big, liquid issues than a 
host of smaller ones. 

The policy of issuing bonds In 
large amounts suits Italy too, 
bankers who market to the Gov- 
ernment point out. One wdrf? ‘it 
is dear that Italy Is not interest- 
ed In small issues; they will only 
move into the market when they 
are sure they can get large 
amounts.” 

By issuing in very large 
amounts, the Government can 
show the foreign exchange mar- 
kets that it has the confidence of 
the Eurobond market, which it 



can use to build up foreign cur- 
rency reserves to defend the lira. 

This leads on to the expecta- 
tion that Italy will. continue to 
concentrate an the bond 
rather than the banking market, 
since bonds gain greater publici- 
ty. However, recently there have 
been murmurlngs in- die bank 
market that Italy may be arrang- 
ing ail bn loan. • 

The success of . its last two 
bonds is impressive, given that 
both appeared. In difficult mar- 
ket conditions; the dollar bond as 
US interest rates were heading 
sharply upwards ahead of the 
stock market crash, and the yen 
bond at the height of the trarno 
in financial markets in October. 

However, both bonds were 
priced at rates to encourage 
switches out of compa- 

rable issues. 

Italy's $lbn Issue, ledby Credit 
Suisse' First Boston, was given a 
short maturity of three years - a 
wise move given investors* reluc- 
tance to extend further along the 
yield curve. Hie band also paid a 
margin of 60 basis points over 
US Treasury bonds - considered 
generous at that time, before 
yield spreads rose steeply daring 
the crash. 

Italy’s Y300bn (*2. 12bn) bond 
was even more of a amp, , since it, 
not only marked the largest even 
Euroyen issue, but with the! 
fixed rate tranche it smpassedi 
its own record of launching the 
largest fixed rate issue. The fixed | 
rate tranche totalled -around 
ll.Oohn. 


. Nomura Intema- 
lead manager, pre- 
fer the issue 
r . The floating rate 

ich paid interest 

ed to the Japanese long-term 


Admi __ 
tional, the 
pared the 
very carefi 
portion, w 
link 


prime rate, was substantially 
jlaced with Japanese banks. 
5% per cent, 4tt-year fixed 
rate portion, meanwhile, was 
to give a 30 basis points 
lick up over comparable 


yield pi 
bonds. 


The Rome headquarters of the Bank of Italy on the Via NazionaJe. 


dare Paaraon 



The vacuum cleaner that doesn't 
mind getting Hs feet wet 


Hi refle c tive mood: Mr Francesca ftrmoign. President 
credfr-etKxflng in the Inter n at i onal capital, aiarkat rawal 
u n ce r tai n ty . 


of -the 'Italian Republic. The country’s 
is M0I In a parted other wi se tinged with 



i£S 




Growth in financial services 

Cartwa d hosa-pepe S. ■' 

-banks have had a- firm- foothold 
in the' field of corporate finance 
since immediately after the Sec- 
ond World War, through their 
collective controlling stake in 
Mediobanca. 

The rate- of Mediobanca as ait- 
investor and financial adviser to 
Italy's large corporations is 
well-known- Last -year the Mila- 
nese institution; managed' 21 
share- and convertible bond is- 
sues for a total value of L5940bn 
Under its new chairman Antonio 
Maccanico, end with -privatisa- 
tion on the way, Mediobanca has 
again becomes focus of interest. 

IMI is a-name of even longer 
standing in Italian finance. In 
March it completed its 56th oper- 
ating year. iMI’s corporate fi- 
nance • activities are undertaken 
through Its, subsidiaries Italfl- 


- nantiaria and Slge, which have 
recently been merged. This move 
follows indications • from princi- 
pal international markets that 
ml would be best served by hav- 
ing a single, large subsidiary op- 
erating in the area of corporate 
finance. 

Last year Italfinanziaria was 
involved , in three major place- 
ment operations for total, of 
L76bn. New investments were 
made in three companies 
shfurehakfings in existing invest- 
ments were increased Involving 
an - overall investment of L75bn 
Sige’s scale at activity was much 
larger. It managed nine place- 
ment syndicates for a total of 
L964bn as - well as participating 
in a further 06. The IMI subsid- 
iary is involved in asset manage- 
ment , brokings capital market 


and the 

vale investment portfolios, 
"s executive vice president 
Quests, emphasises the 
neea for continuous develop- 
ment in order to keep level with 
foreign comeptition. "The field is 
exposed to competitive forces. It 
is diffi c u l t to expand. I Ml works 
maliily w drith the top tier of large 
corporations which are certainly 
not tied to obtaining their finan- 
cial services at home in Italy. 
Life will be even tougher after 
1992," said Mr Questa. 

He is somewhat sceptical about 
the immediate prospects for mer- 
chant banks, underlining the un- 
certainly of the meaning of the 
tom in Italy. 

OwMlane 


;>•; -.- t* •• 

. . • •• I*;-. 

* "*•. .* 5 - / 

* * *♦.*' .5 , . . • . 


As a standard household appliance, the 
vacuum cleaner represents an enormous market 
dominated by a handful of well known brands. To 
crack this established market calls for astute market* 
ing, technical and manufacturing know-how, as well 
as sheer hard work. 

This is the story of Vax Appliances. In the ■ 
late-70's. Alan Brazier, its founder realised that a 
domestic vacuum cleaner that would also wash 
carpets could open up a new market His perseve- 
rance proved him right in seven years. Vax captured 
10% of the U.K. market 

Versatility, such as dry vacuuming and washing 
carpets, coupled with its ability to suck up spills, is 
the reason behind its success. The choice of 
EniChem ABS resin for the chassis was part of it 

EniChem ABS is easy to process, light yet 
strong, resists abrasion and has a high gloss finish. 


The Vax looks good and performs reliably over a 
long time. With hundreds of thousands of Vax 
vacuum cleaners in use and production at two facto- 
ries at opposite sides of the world, a supplier's relia- 
bility is as important as the end product itself. 

This is where EniChem gets Its feet wet by 
ensuring consistent quality and meeting delivery 
schedules. It is a partnership with a common goal: to 
produce the right product at the right time and at the 
right price. This is what you can expect from 
EniChem, one of Europe's largest and. most diversi- 
fied chemical producers. 


SEnlChem 


EniChem (UK) Ltd, Central House. Balfour Road. Hounslow Middlesex TW3 TJX 
TeL: (01) 677 1100. Telex : 928 343. Fax: (01) 572 1850 
Regional offices in Manchester and Dublin 

EniChem SpA. Piazza Boldrini 1, 1-20097 San Donato Milanese 
Tel.: (02) 5201. Telex: 310245 Eni. Fax: (02) 52023854 



SNAMPROGETTI, the inter- 
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Kiumunal TimwTtu*sday No\Viiil«*r 17 tiJ87 


XI' 



C ITALIAN ECONOMY 11 ) 


Pension funds 






is in difficulty 


a 


■was*. v 


ces 


PENSIONERS can breathe a 
of rehef^MKt: sleep more 
The Istitnto Nsudonale della 
Previdehza Sodale, the state 
pension fund INPS, is not on the 

■ verge of bankruptcy. The month* 
ly oW. sge pension is not threat 
ened.by ixpgilnent financial di- 
meter «t the state institution, 
-■Moreover today’s -workers, 
wboae flodal security contribu- 
tion* fund current pensions pay* 

. meats, - should not be anxious 
that . the much-discussed collapse 
INPS baa only been delayed 
untatiiey.retbpt 
■IMPS 1 chairman Giacinto . Mni* 
trflu has -a- reassuring message 
for both, the .'elderly living on 
■penskms and the active members 
-<h the. community whose month- 
ly salaries are lightened by social 
.security deductions. 

... .A S k fl faju n , journalist who was 
general secretary of the commu- 
nist' CGIL trade’ union from 1979 . 
to i985, Mr Mill tello has spent 
' thelasttwo years putting WPS’ 

' acc oun ts In cider. 

.. "Until now INKS has been 
• used as «■ social shock absorber. 
The costs of industrial renewal, 
unemployment in the poor ’mez- 
_ xprgiomo' ’ regions and labour 
1 lay-offs during ' the economic re-' 

. cession, have been borne by 
-.IMPS’,?' he sakL . 

' - - Mr Militrih) explained- that his 
objective, has been to clarify the 
- fi nancia l si tuat ion .at IMPS 

' lei aocounts nndthe reclassifica- 
tion of all inflows and outflows- 
: •! -fThere was considerable abuse 
or invalidity pensions in' the. 
past 'These were given for eco- . 
Jnomic.. rather than health rear' 
sons, to mask and compensate 
.for unemployment and under- 
_ ieranfoyment, .said Mr MIHtello. . . 

raon a total of 18.4 million 
I MPS pensions at the. end Of 

■ 100B7 A8 raflHbn were bring. paid 
. to invalids. Invalid peosians rep- 
resented a cost of L26^00bn last 

■ year, which was equal to one 
third of the total pension pay- 
ments disbursed by INPSl 

Agriculture provides the ex- 
treme example of abuse of the 
system. In this sector invalids 
outnumber old age pensione r s by 
nearly four to one. The L4 mil- 
lion invalids from farming are 
beneficiaries' of a mechanism for 
social engineering. It is easy to 
see how the invalidity pension 
became a valuable tool far the 
in tendlngtheir un- 
i of sotto-oownto. 
MjiarfW fa SiMSIrt Hud 


INFS’ funds should be used only 
for paying retirement pensions. 
"While:, instruments and . mea- 
sures for. assisting society's less 
fortunate members are certainly 
needed, the costs must be borne 
collectively and not through the 
misappropriation of -pensions 
contributions paid by workers 
-and their employers.’ he said. 

The .chairman, of Italy’s nation- 
al pension- fund Is determined 
that it should 1 never again func- 
tion as a dampener for Upsets, or 
: corrective mechahUm for distor- 
tions affecting the country’s so- 
cial structure. - 
Mr MUltefio would like Itaiy^s 
pension system to be overhauled. 
"Pension reform ia definitely 
necessary. However this is very 
difficult because of the consider- 
able anomalies which exist," he 
.said. - - - - • - 

Current levels of social securi- 
ty contributions are very high. 


Employers must pay 35:5 per 
cent of earnings together with a 
further 0.6 per cent for health 
assistance. Employees' contribu- 
tions amounting to 58-9 per cent 
of- earnings feed the pension 
fund. 

"On the Income side far too 
much weight is put on contribu- 
tions. They are significantly 
higher 7 than in other countries^ 
thereby creating a tax on em- 
ployment," said Mr MUIteUo. 

. He considers that it is not pos- 
sible to increase contributions la 
• order to cover Increasing expen- 
diture. According to INPS’ chair- 
man, higher taxes are needed so 
that pension levels can be maln- 



INPS’ pensions are not so gen- 
erous as those paid by ministries 
to civil servants, by the Treasury 
to local government ’erapl 
or by the state banks to 


Than have been reassuring messages for the elderly that ttw state pana kma fund Is not far danger of coflapaa. Current l evels of 
nodal sec uri ty c on tributions sre very high - employers must pay 8U per cant of e a m fci g B together wtth a Author 9.6 par cant for 



Pictured above are otderfy citizens of Mtbm, enjoying an evening chat to the Piazza CM Duomo. 

theless they pie employed in industry and number of pensioners are nance. 

Britain. Pen- ■ commerce showed deficits of brusquely dismissed b^Mr Mill- “Obtaining tl 


pensioners. Nevertheless 

compare well with Britain ... __ . _ 

ston rights mature at 60 years for about Lllbn in both 1965 and tello. He believes that cata- 
men and 66 years for women, . 1086, L91G0bn in 1984 and strophic forecasts are nonsense, 
five years later for the self-em- . L6200hn in 1983. INPS' redassif- "Pensions depend on economic 

ied accounts show surpluses of development and growth. It is a 
L1700bn in 1983 and L200bn in question of distributing the 
.1984, followed by deficits of wealth which is produced. There 

LISOObn in 1986 and L800bn last 

year. Mr MDi cello points to an 
operating result which has im- 
proved from a loss of LI 
In 1981 


-, pensions are payable 
Ibutlon, 


1985 to an expected 


after 35 years contri 
whatever the age of the benfi- 
ciary. The pension is adjusted 
■ through the cost of living index. 

Related to earnings, the amount 
is calculated on. the average 
earnings during the last five' L2800bn in the current year, 
years of contributions. Each year “ 
of contribution provides 2 per 
font of earnings maximum 
pension is 80 per cent of earn- 
ings, equivalent to 40 years of 
contributions. 


is considerable confusion over 
aims and uncertainty over fig- 
ures. The first step must be to 
clarify these” he said. He is well 
aware of the anxiety which un- 
certainty at INPS, widely 


“Obtaining the right balance 
between pubUcc and private sec- 
tor is the key. Pensions should 
be neither completely state nor 
wholly market* said Mr Mill tello. 
He referred positively to the re- 
cent initiative by the Montedison 
chemicals company. The Milan- 
based corporation being the first 
off the marie with a company 
fwn wnt 


report- 


But further steps are needed, ed in the Italian media, stirs up 
in spite of the improvements, in the minds of pensioners and 
"INPS is now facing greater lia- workers. 

bilities to pay ensions as the "Reform Is needed for eoonom- 
workers of the economic boom ic reasons and for equity* said 
years of the 1960s and 1970s Mr Mill tello, who wants to ert- 
Over the past two yean steps reach retirement age, said Mr sure that the solidarity of the 
have been taken